Citing a low return on investment, Hertz will close all its car-sharing service operations in the United States by September, though it will continue the service in some international markets, a spokesperson said.

The car rental company launched Connect by Hertz in 2008 to compete with Zipcar, which Avis Budget Group acquired in 2013. Hertz later rebranded the offering to Hertz On Demand and then to Hertz 24/7.

In the United States, the service had locations in two major metro areas, Orlando and New York/Hoboken, N.J., and Hertz also offered a “small dedicated fleet” for car-sharing services on corporate and college campuses. Hertz began closing those operations in July and expects to complete the process next month, according to the spokesperson.

Hertz also is closing some car-sharing locations in Europe, according to the company.

“We have determined that there is greater return on investment in our core car rental businesses and in European corporate car-sharing, especially considering the significant incremental investment required to build out Hertz car sharing on an international scale,” according to a statement from Hertz. “While we are discontinuing our small presence in the U.S. and certain European cities, we are not exiting the business altogether. We continue to see success with car-sharing in certain segments internationally.”

Hertz car-sharing will continue in Sydney. In Europe, carpooling and fleet-management services will go on, as will van hires via retail partnership.
___

Source: Business Travel News

Comments
JDS Travel News JDS Viewpoints JDS Africa/MI