TLDR
- Hertz (HTZ) shares climbed approximately 18% following the reveal of dual fleet agreements with Uber
- Oro Mobility, a Hertz subsidiary, will oversee charging infrastructure, vehicle maintenance, repairs, and workforce management for Uber’s self-driving Lucid fleet
- The autonomous ride service features Lucid Gravity SUVs equipped with Nuro’s autonomous driving technology, set to debut in San Francisco Bay Area before 2026 ends
- Both companies plan to investigate growth possibilities starting in 2027
- This partnership expands upon the current ride-share vehicle rental collaboration between Hertz and Uber
Shares of Hertz experienced a significant surge Thursday following the company’s announcement of a strategic alliance with Uber to oversee operational aspects of the ride-sharing leader’s autonomous vehicle fleet.
By midday trading, Hertz had climbed 18.4% to reach $6.63 per share. Meanwhile, Uber experienced a slight decline of 0.6%, trading at $74.02.
Hertz Global Holdings, Inc., HTZ
The partnership revolves around Oro Mobility, a freshly established Hertz subsidiary. This new entity will manage operational responsibilities for Uber’s autonomous vehicle fleet, encompassing charging operations, vehicle maintenance, repair services, cleaning protocols, and depot personnel management.
Uber’s robotaxi platform utilizes Lucid Gravity SUVs integrated with autonomous driving systems developed by Nuro. Lucid shares also benefited from the announcement, climbing approximately 5.5%.
The robotaxi service is slated to commence operations throughout the San Francisco Bay Area prior to the conclusion of 2026. Both Hertz and Uber have indicated intentions to pursue expansion initiatives beginning in 2027.
Gil West, CEO of Hertz, explained that Oro was developed to bridge demand with expandable fleet operations. “This initiative deepens our expertise across various mobility applications,” West stated in the official announcement.
Andrew Macdonald, Uber’s Chief Operating Officer, noted the collaboration will facilitate autonomous technology integration into Uber’s platform while accelerating the transition toward a combined network featuring both human drivers and self-driving vehicles.
Hertz Pivots Toward New Mobility Strategy
This marks another chapter in Hertz’s efforts to capitalize on evolving transportation trends. In 2021, the rental company garnered significant attention by revealing a massive 100,000-vehicle electric vehicle purchase agreement with Tesla, which temporarily propelled Tesla’s valuation beyond $1 trillion.
Hertz subsequently disclosed intentions to acquire up to 175,000 electric vehicles from General Motors alongside 65,000 units from Polestar. These ambitious plans never reached full fruition.
By the beginning of 2024, Hertz began divesting its electric vehicle inventory at substantial losses. Unexpectedly elevated maintenance expenses, frequently associated with Uber drivers leasing these vehicles, combined with Tesla’s dramatic pricing reductions, forced the strategic retreat.
Oro Mobility signals a strategic pivot. Instead of vehicle ownership and rental operations, Hertz now focuses on becoming a specialized fleet operations and management service provider—a model more aligned with its traditional business expertise.
Industry Competition Already Established
Hertz faces existing competition in this emerging sector. Competitor Avis currently provides fleet management services for Waymo, the autonomous vehicle division of Alphabet.
As numerous robotaxi enterprises seek to outsource operational logistics, expanding opportunities emerge for specialized third-party operators like Oro Mobility.
Uber maintains agreements with numerous autonomous vehicle developers worldwide. The company has committed to procuring at least 35,000 robotaxi-configured vehicles from Lucid Motors exclusively. This begins with an initial 10,000 Gravity SUVs, followed by an additional 25,000 units based on Lucid’s forthcoming mid-size vehicle platform.
Uber currently owns more than 11% of Lucid Motors following its strategic investments accompanying these substantial vehicle commitments.
Prior to Thursday’s announcement, Hertz had already gained 22% throughout April and 9% year-to-date.
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