Hertz Reaches Agreement with Uber and Purchases 200,000 Electric Cars from Tesla to Expand Its Fleet

Setting Historical Record, Car Rental Hertz Signed Agreement with Uber and Ordered 100 Thousand Electric Cars from Tesla, the Company’s CEO Already Claims That He Plans to Double the Order

Hertz caught the spotlight this week, all due to its large order of 100 thousand units of the Tesla Model 3, which will be purchased so the company can use a fleet of electric cars for rental with Uber. Now Hertz plans to double its order of Tesla vehicles. Marks Fields, the company’s CEO, says that he soon plans to order another 100 thousand units of the Tesla Model 3 that will also be used by Uber.

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A World Record in Electric Car Acquisition

We will soon learn more details about Hertz’s transition process, which in its first phase, with a value reaching around US$ 4.2 billion, represented the largest electric car purchase in the world.

During an interview with CNN, Hertz’s CEO explained that of the 100 thousand units purchased from Tesla, 50 thousand will be for direct use by Uber and its drivers, and that only the remaining half will become part of Hertz’s own car fleet. However, Fields states that a clause in the partnership with Uber would allow it to request 150 thousand Model 3s from Hertz within three years.

At this point, it is a relatively short time, as another 100 thousand electric cars would be needed to be added to the 100 thousand that have already been purchased by Hertz.

First 100 Thousand Electric Cars Will Be Delivered by Tesla by the End of 2022

Uber’s CEO, Dara Khosrowshahi, explained that according to research conducted by the company, many drivers would be willing to rent a Tesla for US$ 300 per week, and thus he is confident that between the current scenario and 2024, Uber will increase its fleet from 50 thousand to 150 thousand electric cars from Tesla, which, even without this large order from Hertz, is already the best-selling model in history.

To confirm whether the projections are correct, we will have to wait another year. This is because Tesla will deliver the first 100 thousand units of the model by the end of 2022. It is evident that, per the company’s practice, there will be no discounts on the final acquisition price.

Reports indicate that the electric cars will not be equipped with Full Self Driving, since somewhere the CEO of Hertz would have to save costs. Considering that this technology costs 10 thousand euros, it is easy to do the math and understand the savings generated.

Learn About Hertz

The company was founded in 1918, when Walter L. Jacobs started operations with vehicle rentals. In 1923, Walter sold the company to John D. Hertz. Since then, the company has gone through several historical moments.

The company arrived in Brazil in 1995 through Hertz Brasil and in 2010 announced a merger agreement, but the controllers did not accept the first proposal. In May of last year, the company was in debt and announced that it was negotiating a recovery plan in Canada and the USA.