Hertz appears to be taking a page from Tesla’s marketing playbook, using the automaker’s classic “But wait, there’s more!” strategy. Just days after announcing that it would purchase 100,000 Teslas by the end of 2022, Hertz now says it will make up to 50,000 of these available for Uber drivers to rent.
Uber and Hertz have partnered since 2016 to provide drivers with vehicle rental options. The Tesla deal will offer drivers not only fuel savings, but other financial benefits through Uber’s Green Future program, which provides incentives for drivers to transition to EVs. A recent survey of 6,000 Uber drivers found that 47 percent are interested in having an EV for their next car.
Hertz will offer Uber drivers a special weekly rental rate for a Model 3 that includes insurance, basic maintenance and unlimited miles. The company says the rate will start at $334 a week, and later be reduced to $299.
As Green Car Reports calculates, that rate compares pretty favorably to leasing—a Model 3 Standard Range Plus can be leased for $565 a month, but this requires a payment of $1,260 up front and a 36-month lease term, has a cap of 15,000 miles a year, and provides no insurance.
Uber drivers will get access to the Supercharger network and discounts at EVgo, which offers Tesla connectors at some of its locations.
If a substantial number of Uber drivers go for the deal, it would be a big win for clean air—studies have found that electrifying rideshare vehicles could deliver far greater emissions reductions than electrifying personal passenger cars. In fact, some such deal may soon be a necessity in California and other clean-air states. The California Air Resources Board recently approved new rules requiring the rideshare industry to begin the transition to EVs in 2023, and to make 90% of its vehicle miles electric by 2030.
“Today’s partnership with Uber is another major step forward in Hertz becoming an essential component of the modern mobility ecosystem and executing on our commitment to being an environmentally forward company,” said Mark Fields, Hertz Interim CEO.
“Climate change is an urgent global challenge we must all tackle together, and now is the time to drive a green recovery from the pandemic,” said Uber CEO Dara Khosrowshahi. “This combines the power of Tesla, Hertz and Uber to help accelerate the transition to zero-emissions mobility.”