By Sam Boughedda
Investing.com — Following an order for 100,000 Tesla's, Hertz Global Holdings Inc (OTC:HTZZ) has secured an exclusive arrangement to sell electric vehicles to Uber (NYSE:UBER) drivers and has enlisted the help of Carvana Co (NYSE:CVNA) to sell its older rental cars
The two deals represent a significant shift in the pace for the adoption of electric vehicles and help to boost a business that seemingly was, at one stage, on its last legs. However, it is now under the control of hedge funds and private-equity owners and looking to transform the vehicle rental market.
Starting on Nov. 1, the deal with Uber will give drivers the ability to rent Tesla's through Hertz's rental program in Los Angeles, San Francisco, San Diego, and Washington, D.C., with a nationwide expansion in the following weeks.
"We believe this will be a win-win for drivers who rent: a chance to both increase earnings and reduce environmental impact," Uber stated in its announcement.
In regards to Carvana, the two companies are partnering nationally – following a pilot – to allow Hertz to use Carvana's online transaction technology and logistics network to sell its unwanted rental vehicles.
With the company purchasing 100,000 Tesla's, it is looking to transform its fleet and look more toward the electric vehicle market. The order on Monday for $4.2 billion helped boost Tesla's valuation to over $1 trillion.
"This is another step toward the new Hertz – combining our brand strength and global fleet expertise with new technology and innovations to chart a dynamic, new course for the future of travel, mobility and the auto industry," said Mark Fields, Hertz interim CEO.