Hertz Global Holdings Inc., fresh off a blockbuster order for 100,000 Teslas, reached an exclusive agreement to supply Uber drivers with electric vehicles and signed up Carvana Co. to dispose of rental cars it no longer wants.
Taken together, the deals represent a trifecta of aggressive and innovative initiatives with the potential to upend the car-rental business and hasten the transition to greener fuel sources. The car order on Monday, the largest-ever for EVs at $4.2 billion, was such as watershed moment that it propelled Tesla Inc.’s valuation past $1 trillion.
Under the agreement with Uber Technologies Inc., drivers for the ride-hailing giant who previously had to provide and maintain their own EVs will be able to rent one of 50,000 Teslas from Hertz instead. The program, which starts Nov. 1, is an alternative to buying or leasing, and many drivers may find it more appealing.
Uber drivers can rent a Tesla through Hertz starting on Nov. 1 in Los Angeles, San Francisco, San Diego and Washington DC, with the program later this year expanding to cities nationwide, the ride-hail company said in a blog post.
The Tesla rentals, consisting mostly of the electric vehicle company’s Model 3 sedan, will be available exclusively to Uber drivers and start out at $334 a week, including insurance and maintenance. Uber said the rental cost would drop to $299 per week or lower as the program expands in the coming year.