Hertz Global Holdings Inc. has reached an exclusive agreement to equip Uber drivers with up to 50,000 Teslas for rent by 2023.
Hertz, Uber, and Tesla stocks all rose on the news.
|HTZZ||HERTZ GLOBAL||28.46||+1.45||+ 5.37%|
|ABOVE||UBER TECHNOLOGIES, INC.||44.56||-0.17||-0.38%|
|TSLA||TESLA, INC.||1,077.04||+39.18||+ 3.78%|
The program will allow Uber drivers in Los Angeles, San Francisco, San Diego, and Washington, DC to rent Tesla from November 1st. Nationwide expansion will follow shortly.
The rental allows Uber drivers to offer rides for more hours and more miles. According to Uber, drivers achieve three to four times more emissions savings than the average car owner.
Rents start at $ 334 per week and drop to $ 299 or less once the program is fully up and running. The cost includes insurance and maintenance.
HERTZ ORDERS 100,000 TESLAS TO ELECTRICATE THE RENTAL FLEET
“With Hertz’s flagship deal earlier this week, this Uber partnership marks the largest expansion of electric vehicles on a mobility platform in North America,” said Dan Ives, an analyst at Wedbush Securities.
Hertz announced on Monday an initial order of 100,000 Tesla, which should be delivered by the end of next year. The agreement also establishes an electric vehicle charging infrastructure across the company’s global infrastructure.
NFL star Tom Brady has signed with Hertz to present the vehicles.
Hertz also announced a partnership with Carvana Co. on Wednesday. The deal will allow the car rental company to leverage Carvana’s online transaction technology and logistics network to sell vehicles it no longer uses.
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The latest string of deals comes just weeks after Mark Fields, former CEO of Ford Motor Co., was named interim CEO of Hertz.