Hertz Global has officially launched a fully online car-buying marketplace, responding to the growing demand for used vehicles. The announcement was made on March 12, 2024, and has already resulted in a notable increase in the company’s shares, which rose by as much as 2.5% following the news. This initiative marks a significant step for the car rental company as it pivots towards expanding its sales capabilities beyond traditional vehicle rentals.
The new online platform allows customers to purchase preowned vehicles directly through Hertz’s website. This move is part of a broader strategy that includes a collaboration with Amazon.com and its automotive retail platform, Amazon Autos. Through this partnership, Hertz aims to streamline the buying process for consumers looking for reliable used cars. Additionally, the marketplace will offer customers the option to trade in their existing vehicles, enhancing the overall purchasing experience.
Hertz has faced challenges in the car rental market, particularly in recent years. The company has seen fluctuating demand, which has led to significant changes in its fleet composition. In a bid to adapt, Hertz has made the decision to reduce its inventory of electric vehicles, offloading a majority of its Tesla units in 2022 due to increasing repair costs. This shift back to gas-powered vehicles reflects the company’s efforts to stabilize operations and meet current market needs.
The online car-buying platform is managed under Hertz’s Hertz Car Sales brand, which already offers used cars for purchase both online and at various locations throughout the United States. Hertz operates its car rental services through well-known brands such as Dollar, Thrifty, and Firefly, reaching customers in over 160 countries.
As Hertz Global ventures into the online car sales market, the company aims to leverage its established brand and extensive industry experience. This strategic direction not only opens new revenue streams but also positions Hertz to better cater to shifting consumer preferences in the automotive industry. The success of this initiative will depend on the company’s ability to effectively navigate the competitive landscape of online vehicle sales while maintaining its core rental business.