According to an article by CBC, rental car company giant Hertz is launching a program that will help it make more money from older cars in its fleet.
The rise of ride-sharing services like Uber and Lyft is being felt across the transportation industry, including by rental car services as business travelers increasingly opt for a rideshare instead of a rental car. However, Hertz appears to have found a way for both companies to co-exist: By renting out 2 to 3 year old cars to Uber and Lyft drivers. These cars, which will have been rotated out of Hertz’s standard rental car fleet, will be available to rent out for several weeks or months at a time – much longer than a typical rental.
President and CEO of Hertz Global Holdings, John Tague, sees the arrangement as a mutually beneficial opportunity: “We consider this agreement to be largely complementary to our rental car business… The ride-share business is growing and we think this is one way we can be a part of that growth”
According to the article, ride-sharing companies are working more closely with other players in the automotive industry, such as automakers and rental car companies, as they look for new ways to expand their pool of drivers.