Hertz to accelerate electric vehicles expansion to meet demand

Hertz Global Holdings plans to have about 3,000 electric vehicles across 80 markets in place by the end of 2022.

The car rental firm currently has electric vehicles and charging stations deployed across more than 30 markets, said Hertz CEO Stephen Scherr.

Scherr said electric cars have “great appeal” to corporate clients as they help to satisfy their organisations’ ESG (environment, social and governance) and carbon footprint objectives.

The company is accelerating the addition of electric vehicles, among other actions, to meet demand that currently exceeds supply and is pushing up prices.

Hertz reported revenue of $1.8 billion for the first quarter of 2022, up by 40 per cent year-on-year, and adjusted net profit of $403 million compared with a loss of $52 million in 2021.

The company has expanded its current fleet by 31 per cent to 481,200 vehicles from 367,600 in January 2021, with vehicle utilisation remaining steady at 75 per cent during the quarter.

Hertz’s international segment, outside the Americas, reported $252 million in revenue, up by 36 per cent from $186 million a year ago. The international fleet grew by 25 per cent year-on-year to nearly 83,600 vehicles, although usage decreased to 68 per cent compared with 75 per cent in 2021.

Despite the improved results, corporate bookings remain “considerably below pre-pandemic levels”, at about 63 per cent of 2019 sales.

“There is still considerable demand that can be recovered to get to a normal state of affairs,” said Scherr. “March was the first month since the onset of the pandemic where revenue exceeded 2019 levels. We are seeing that momentum continue into April.”

Hertz has also announced that Ned Ryan will join the company as chief product development officer from May 9.

Ryan will “oversee efforts to deliver connected products and technology to enhance the customer experience”, according to the company.