Hertz to End U.S. Carsharing Service

In a conference call on Friday regarding Hertz's financial restatements, Hertz CEO John Tague indicated that Hertz will be withdrawing its carsharing service (Hertz 24/7) in the U.S., but it will continue to grow its carsharing programs internationally.

Hertz 24/7 provides self-service vehicle access — cars can be rented by the hour and are available 24 hours a day, seven days a week.

During the question-and-answer period, Tague was asked about the future of Hertz’s carsharing initiatives. Tague elaborated that the investment in carsharing “isn’t competitive with the return on invested capital in the core business.”

“Hertz was not successful in building scale in its U.S. carsharing business over the last several years,” said Tague. “And it was a very small scale business for us even last year. So we’ve elected in the U.S. to withdraw from carsharing, and we are executing that at this time.”

However, Tague said Hertz will continue to build these programs internationally.

“We are operating successfully with a number of models internationally and intend to continue to expand those models,” said Tague. “We have a profitable operation in Australia. We have a lot of promising business models in Europe that are with key retailers such as IKEA.”

Tague added that the door isn’t completely closed on carsharing in the U.S.: “That’s not to say that it might not be appropriate for us to re-enter the market overtime. But the investment required today to create scale would be very significant, and we are where we are.”

Comments

  1. Ed Douglas [ July 27, 2015 @ 07:19PM ]

    Test

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.