Hertz Enters Autonomous Ridesharing with Uber Partnership
Hertz has been modernizing its business over the past several years, though its AI inspection scanners have caused some customer frustrations. Now, the rental giant is venturing into autonomous ridesharing by launching a new subsidiary, Oro Mobility, in collaboration with Uber.
According to a Quartz report, Oro Mobility will be responsible for the "operational upkeep of Uber’s autonomous robotaxi program," which includes managing a fleet of Lucid cars equipped with Nuro’s self-driving hardware and software.
Hybrid Service: Human Drivers Now, Robotaxis Later
Until autonomous operations fully launch, Oro Mobility will deploy a fleet of employed drivers accessible through Uber. This service is already active in Los Angeles and San Francisco and is set to expand to New Jersey before summer.
Uber’s Investment in Lucid and Nuro’s Role
Uber has become a major investor in Lucid Motors, now holding a 11% stake. Last month, Uber committed to purchasing "at least" 35,000 Lucid Gravity electric SUVs, with a total investment of $500 million in the luxury EV manufacturer. Oro Mobility will handle service and maintenance for these vehicles, which will be powered by Nuro’s autonomous driving technology.
What Does Oro Mobility’s Operational Upkeep Entail?
In a statement, Hertz explained that Oro Mobility will provide:
- Day-to-day vehicle asset management
- Charging and maintenance
- Repairs and cleaning
- Depot staffing
The move aligns with Hertz’s evolving business model as consumer vehicle interaction shifts from ownership to service-based needs.
Hertz’s Past Pivots and Industry Competition
Hertz has attempted multiple business pivots in recent years, including acquiring and later selling large fleets of Teslas and Polestars, which resulted in discounted deals for buyers. However, the company is not the first in its sector to enter the autonomous ridesharing space. Avis made headlines in 2023 with a similar partnership with Waymo, a Google-affiliated autonomous vehicle company.
"The way people interact with vehicles on an ownership and needs basis is changing, which means its business model is also changing."
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