Hertz, the renowned car rental company, concluded the initial quarter of the year with a fleet of 50,000 electric vehicles (EVs), constituting approximately 10 percent of their total car inventory. This figure is expected to witness a substantial surge in the upcoming quarters as Hertz has placed orders for hundreds of thousands of EVs from reputable manufacturers like Tesla, Polestar, and General Motors.
Towards the end of 2021, Hertz made a significant investment in 100,000 Tesla vehicles, intending for them to comprise 20 percent of their overall fleet by the conclusion of 2022. However, as the latest data demonstrates, the company’s original plan did not unfold as intended.
Nevertheless, the US-based car rental giant has persistently demonstrated its commitment to electrifying its operations. Subsequently, they placed two additional orders for 65,000 EVs from Polestar and another 175,000 battery-powered cars from General Motors.
Taking all these orders into account, Hertz envisions an immense potential fleet of 340,000 EVs by 2027. Additionally, Hertz has formed a partnership with the oil behemoth BP to establish and implement a nationwide network of EV charging solutions for the rental company and its patrons, which will be powered by BP Pulse.
During the initial three months of this year, the company recorded $2 billion in revenue, reflecting a 13 percent year-over-year (YOY) increase, primarily attributable to heightened demand from the leisure and corporate sectors.
Hertz CEO Stephen Scherr expressed his satisfaction with the company’s progress across all segments, stating:
“Through our ongoing investments in various aspects of our business, particularly in technology and electrification, we are enhancing our operational efficiency, expanding our presence in the rideshare industry, and facilitating the revitalization of our value brands.”
Hertz has already commenced receiving deliveries of EVs from General Motors and Polestar during the first quarter, thereby broadening the range of zero-emission models available to their customers.
Furthermore, the company has established a partnership with Uber, enabling drivers to rent EVs, reportedly leading to a 10-15 percent increase in their earnings compared to traditional internal combustion engine vehicles, thanks to the reduced operational costs.
Hertz has also recently launched its Hertz Electrifies program, aimed at not only improving the EV charging infrastructure but also creating opportunities for local students in cities where the program is active. Currently, Hertz Electrifies is operational in Denver, with Houston and Atlanta set to follow suit.
The American car rental company projects a fivefold increase in its EV rental business in 2023 compared to the previous year, resulting in a total of two million all-electric rentals.
