In Hertz Global Holdings's second quarter earnings conference call, held Aug. 7, CEO Kathy Marinello offered some thoughts on the recent sale of Fox Rent A Car to Europcar.
The comments came during the question-and-answer period, in which an analyst asked how a consolidated rental facility (conrac) on airport gives “a more equal footing” to smaller brands in the conrac.
Marinello responded that Hertz strategically uses Dollar and Thrifty to compete in the budget-conscious space occupied by Fox. She said Dollar competes slightly more upmarket, with Budget, for instance, while Thrifty would be a closer competitor to Fox.
Investing in Dollar and Thrifty allows Hertz to better compete in the premium segment. Hertz’s three brands in these different segments will allow the company to regain share without having to acquire a budget player like Fox, Marinello said.
Marinello turned the conversation on growth opportunities to expansion of off-airport locations and business-to-business opportunities involving renting to Transportation Network Companies such as Uber and Lyft and last-mile delivery companies.
“We don't see our future competing down with the ankle-biters of the business,” she said. “We see it providing value services and leveraging the brands we have in the investments we've made in technology and those brands.”