Hertz Rental Cars Has A New Plan To Beat Bankruptcy

Nov. 14, 2020 3:21 PM ET by Aaron Brzozowski Industry News / 14 Comments

For $599 per month, you can have an all-inclusive monthly car subscription.

In recent years, numerous carmakers have taken a stab at entering the burgeoning car subscription market. Porsche and Volvo have seen some success with Porsche Drive and Car by Volvo, respectively, although the market wasn't so kind to GM's product, Maven, which was axed earlier this year.

Now, the rental car company Hertz is taking a big step into the market by expanding its car subscription service, Hertz My Car, across the US. This despite the firm filing for bankruptcy earlier in the year. It's a distinctly different business model from its bread-and-butter short-term car rentals, with maintenance, liability, and premium roadside assistance all included in the monthly subscription fee.

Hertz My Car launched in Austin, Texas and Atlanta, Georgia last year, and since then, "we've seen growth in the program locally and greater interest in other markets," says Hertz's Executive Vice President of Global Marketing and Customer Experience, Laura Smith.

Hertz My Car starts at $599 a month for economy, compact, and mid-size cars, including the Mazda 3 and other models in that segment. Considering everything that's included, and depending on what market you live in, that might work out comparable to a lease, while offering far more flexibility. Tier 2, at $999 per month, unlocks access to full-size cars, small crossovers, and mid-size trucks like the Toyota Tacoma, while the most expensive Tier 3 at $1,399 includes luxury cars, mid-size crossovers, and full-size trucks.

As tough as it seems to be for some car subscription services to stick, Hertz has a leg up in that it's already spent years amassing a large, nationwide fleet of rentable vehicles and building up the infrastructure to take care of cleaning and servicing. As a matter of fact, the company's huge footprint is part of what prompted the expansion; Laura Smith says that subscribers in My Car's initial launch markets said they wanted to be able to pick up and return cars at other locations.

"We're excited to expand Hertz My Car nationwide to give customers the ultimate flexibility and convenience when it comes to their daily travels," she says.

Hertz Rental Cars Has A New Plan To Beat Bankruptcy

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Hertz Rental Cars Has A New Plan To Beat Bankruptcy

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