Part of the problem is linked to Hertz’s plans to rent EVs to ridehail drivers.
Of the 100,000 Tesla acquired by Hertz, half were to be allocated to Uber drivers as part of a deal with the ridehail company. And drivers said
they loved the Teslas!
But Uber drivers also tend to drive their vehicles into the ground. This higher rate of utilization can lead to a lot of damage — certainly more than Hertz was anticipating.
Hertz said it tried to mitigate “higher incidents of damage among EV rideshare drivers” by siphoning some of its fleet into its leisure segment. But that didn’t work out as well as the company hoped.
“Higher incidents of damage among EV rideshare drivers”
“With hindsight, this left leisure over fleeted with EVs,” Scherr said in an earnings call this week. “As a result, RPD [revenue per day] for our electric vehicles in leisure dropped, which contributed to the lower RPD performance for the company in the quarter.”