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Hertz Partners With Uber to Add Up to 50,000 Tesla Model 3s to its Driver Rental Car Program by 2023

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【Summary】Fresh off the announcement that Hertz will purchase 100,000 Tesla Model 3s for its rental car fleet, the company announced a second partnership with Uber to add up to 50,000 Tesla vehicles by 2023 that Uber drivers can rent by the day. The Tesla Model 3s will be made available through Uber’s driver rental program. Hertz says the partnership is the largest expansion of electric vehicles on a mobility platform in North America and one of the largest globally.

Eric Walz    Oct 27, 2021 8:00 AM PT
Hertz Partners With Uber to Add Up to 50,000 Tesla Model 3s to its Driver Rental Car Program by 2023

Fresh off the announcement that Hertz will purchase 100,000 Tesla Model 3s for its rental car fleet, the company announced a second partnership with Uber to add up to 50,000 Tesla vehicles by 2023 that Uber drivers working for the ride-hailing company can rent by the day.

The Tesla Model 3s will be made available through Uber's driver rental program, which allows qualified drivers to rent a vehicle so they don't have to use their personal vehicle to drive for the ride-hailing company.

Beginning Nov. 1, Uber drivers can rent Tesla Model 3s from Hertz through the program in Los Angeles, San Francisco, San Diego and Washington, D.C. A nationwide expansion is planned in the coming weeks. 

The Hertz-Uber offering can also make it easier for its drivers to rent an electric vehicle by eliminating the long-term commitments of purchasing or or leasing a car in order to drive for Uber. 

Hertz says if the program is successful it could expand to include 150,000 Teslas over the next three years. However, Hertz warned this plan could be affected by factors outside of its control, such as semiconductor chip shortages or other constraints.

"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. "We are creating the new Hertz and charting a dynamic, new course for the future of travel, mobility and the auto industry."

Hertz and Uber first established a rental service for gig drivers in 2016, with discounted rates starting at $260 per week that includes unlimited mileage. The discounted Hertz rental fee also covers insurance and basic maintenance. 

Hertz says that Uber drivers that rent a Tesla will get the best deal available on the market. The fully electric vehicles offer gas savings and therefore higher earnings potential. Uber drivers renting a Tesla will also receive complimentary access to Tesla's Supercharger network and Uber's exclusive EVgo charging discounts of up to 25%. 

Drivers can also take advantage of other financial benefits through Uber's "Green Future" program, which provides additional incentives of up to $4,000 annually, such as $1 extra per trip, to encourage drivers to transition from gas-powered vehicles to EVs.

Drivers can also earn additional fees from riders who choose to be picked up in an EV through the "Uber Green" low-emission ride option. Drivers that use an EV on the Uber platform are automatically opted in to Uber Green, which pays them an extra $0.50 when riders request to be picked up in an electric vehicle from the app.

Uber's Green Future program provides access to resources valued at $800 million to help its drivers transition to EVs.

"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. We look forward to seeing more EVs on the road right away."

Hertz was the first U.S. car rental company to introduce EVs to its rental fleet in 2011. 

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