TLDR
- Shares of Hertz climbed approximately 18% following the announcement of dual fleet collaborations with Uber
- Oro Mobility, a Hertz subsidiary, will oversee charging infrastructure, vehicle maintenance, repair services, and depot operations for Uber’s self-driving Lucid fleet
- The autonomous ride service will deploy Lucid Gravity SUVs equipped with Nuro’s autonomous driving technology, debuting in San Francisco by late 2026
- Both companies plan to evaluate growth possibilities beginning in 2027
- This collaboration expands upon the existing ride-share vehicle rental agreement between Hertz and Uber
Shares of Hertz experienced a significant surge Thursday following news that the rental car giant has forged a partnership with Uber to facilitate operational support for the ride-hailing platform’s autonomous vehicle initiative.
Hertz shares climbed 18.4% during midday trading sessions, reaching $6.63. Meanwhile, Uber experienced a modest decline of 0.6%, trading at $74.02.
Hertz Global Holdings, Inc., HTZ
The agreement revolves around Oro Mobility, a freshly established Hertz subsidiary. Oro will manage daily operational requirements for Uber’s self-driving vehicle fleet, encompassing charging services, vehicle maintenance, repair work, cleaning protocols, and depot personnel management.
Uber’s robotaxi initiative will utilize Lucid Gravity SUVs integrated with autonomous driving systems developed by Nuro. Lucid shares also experienced gains on the announcement, climbing approximately 5.5%.
The autonomous service is projected to commence operations in the San Francisco Bay Area by the conclusion of 2026. Both Hertz and Uber indicated they will assess potential expansion strategies throughout 2027.
Gil West, CEO of Hertz, explained that Oro was created to bridge demand with efficient fleet management capabilities. “Through this collaboration, we’re expanding our expertise across various mobility applications,” West stated in the official announcement.
Andrew Macdonald, Uber’s Chief Operating Officer, noted the partnership will facilitate the integration of autonomous technology into Uber’s ecosystem and accelerate the transition toward a blended network combining human drivers with self-driving vehicles.
Hertz Pivots to New Mobility Model
This marks another chapter in Hertz’s efforts to capitalize on emerging transportation technologies. In 2021, the company generated significant attention with a planned purchase of 100,000 electric vehicles from Tesla, a move that temporarily propelled Tesla’s valuation beyond $1 trillion.
Hertz subsequently revealed intentions to acquire up to 175,000 EVs from General Motors and an additional 65,000 from Polestar. However, none of these ambitious procurement plans reached full completion.
By the beginning of 2024, Hertz began liquidating its electric vehicle inventory at a financial loss. Unexpectedly high maintenance expenses—many associated with Uber drivers who rented the vehicles—combined with Tesla’s substantial price reductions led to the strategic reversal.
Oro signifies a modified strategy. Instead of purchasing and leasing electric vehicles directly, Hertz is now establishing itself as a fleet management and operational services provider, which aligns more closely with its traditional business expertise.
Industry Competition Intensifies
Hertz faces competition in this emerging sector. Competitor Avis currently provides fleet management services for Waymo, the autonomous vehicle division of Alphabet.
As numerous robotaxi companies seek to outsource operational logistics, the market opportunity for third-party service providers like Oro continues to expand.
Uber maintains partnerships with dozens of autonomous vehicle manufacturers worldwide. The company has committed to ordering a minimum of 35,000 robotaxi-capable vehicles from Lucid Motors alone. This includes an initial 10,000 Gravity SUVs, with an additional 25,000 units based on Lucid’s forthcoming mid-size vehicle platform already confirmed.
Uber currently maintains an ownership stake exceeding 11% in Lucid Motors following its strategic investments accompanying the vehicle purchase agreements.
Prior to Thursday’s announcement, Hertz had already gained 22% during April and 9% year-to-date.
