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
Hertz car-sharing will continue in Sydney. In
Europe, carpooling and fleet-management services will go on, as will van hires via
Source: Business Travel News