Uber Partners with Hertz to Manage Robotaxi Fleet

Uber's luxury robotaxi service with Lucid Motors and Nuro is getting a fourth partner: Hertz. The rental car giant will handle vehicle asset management, charging, and maintenance.

Hertz Takes the Wheel

Hertz will provide day-to-day vehicle asset management, including charging, maintenance, repairs, cleaning, and depot staffing. This work will be handled through a newly-established affiliate called Oro Mobility, which will provide integrated fleet management solutions across a range of mobility segments.

Hertz's New Venture

As the industry transitions from personally owned vehicles to commercially operated driver-led and autonomous fleets, Oro aims to fill a critical orchestration and operations gap. This is not the first time Hertz has followed new mobility trends. The company made a big splash in 2021 when it announced it was buying 100,000 EVs from Tesla.

A Familiar Partnership

Uber and Hertz have a history of working together. In 2021, Uber and Hertz announced a partnership to provide EVs for Uber's ride-sharing service. This new partnership takes their collaboration to the next level.

Hertz's Core Competencies

Starting up a fleet management and operations arm should be closer to Hertz's core competencies as a rental car giant. Competitors like Avis are already doing this kind of work for Waymo. And with robotaxi companies seemingly keen to use third parties to manage this piece of the puzzle, Hertz could build a decent business with Oro.

Expansion Plans

Hertz and Uber said Thursday that they will explore expansion opportunities in 2027. Uber has deals with dozens of autonomous vehicle companies around the world, and has plans to order at least 35,000 robotaxi-ready vehicles from Lucid Motors alone in the coming years.

Uber's luxury robotaxi service is just one part of the company's broader strategy to transform the transportation industry.

The Future of Transportation

The partnership between Uber and Hertz is a significant development in the rapidly-evolving transportation industry. As companies like Uber and Hertz continue to innovate and adapt, we can expect to see even more exciting developments in the years to come.