Hertz has recently revealed strong revenues and demand as the economies emerge from the global pandemic, as reported by The Driven.
The global rental company reported third-quarter revenue of $2.5 billion, an increase of 12 percent year-on-year. In addition, this also highlighted strong demand across leisure, corporate, and rideshare. Their corporate volumes have also reached 75 percent of pre-pandemic levels, which is said to likely keep improving over the coming quarters.
Also during the said quarter, Hertz signed a huge EV deal with General Motors (GM) and Uber for up to 175,000 EVs, which also adds to their previous Tesla and Polestar partnerships. The company also announced its partnership with Bp Pulse to create EV charging networks in the US.
EV Fleet by 2024
Hertz is serious about increasing EVs in their fleet, especially since EVs are 50 percent cheaper to maintain compared to petrol or diesel vehicles. In addition, the company is more positive that it will be able to reduce the cost of its EV fleet of 100,000 Teslas and 150,000 with the upcoming US Inflation Reduction Act.
Also Read: Bp Pulse and Hertz Team Up to Build Network of EV Fast Chargers in High-Demand Locations
The Rise of Electric Vehicles
Major car manufacturers have taken note of the demand for EVs and are now joining the bandwagon. If we look at Hertz's intent to increase its EV fleet, it's easy to notice the rise (and affordability) of EVs, which may be one of the reasons Hertz decided to increase the number of EVs in their fleet. In addition, it is also important to consider the rise of ride-hailing, which also contributes to the increase of EVs.
Hertz's intent to increase the number of EVs in their fleet is also an indication that we might see an increase in the number of EVs in ride-hailing, which could also be one of the major reasons why Hertz decided to increase their EV fleet.
Ride-hailing accounts for a big chunk of today's car rental demand, so it is not surprising that niche companies such as Hertz or Avis Car Rental are trying to capitalize on the electric vehicle's momentum using the same business model in a way. As gas prices are on the rise, and people are starting to care more about their carbon footprint, we might see more of these electric cars on the road.
EV Future
Electric vehicles are starting to make waves in the global automotive industry, as new players such as Tesla, GM, and Bp and companies outside of the automotive industry such as Hertz are all of a sudden in favor of EVs. This is in line with the global move to decrease fossil fuels, specifically in the automotive industry, since renewables and electric vehicles are steadily becoming more affordable and reliable.
Based on the increase in the number of EVs, we might see more companies employing the same strategy as Hertz to increase the number of EVs in their fleet. This could also be one step to solving the upcoming EV charging infrastructure problem.
Related Article: Hertz to Allow Renting of 50,000 Tesla EVs For Uber Drivers
This article is owned by Tech Times
Written by April Fowell
