Uber announced on Wednesday that Rental company Hertz will supply 50 percent of its order of 100,000 Tesla cars to Uber drivers who want to rent the cars. Following the announcement, Shares of Tesla closed up 1.9 percent while that of Uber closed down 2.8 percent.
The decision follows Hertz order of 100,000 Tesla vehicles, an order that raised the market capitalization of electric vehicle company Tesla to $1 trillion. Hertz made an order of 100,000 electric vehicles to build out its electric vehicle rental fleet by the end of 2022 and the deal is the largest-ever purchase of electric vehicles. According to a Bloomberg report, the cars are slated for delivery within the next 14 months and will be available to customers in the U.S. and parts of Europe as early as November. The order will likely make up a significant portion of Tesla’s vehicles to be manufactured and delivered over the next 14 months.
According to Uber, the deal is a strategic one. It will offer drivers a way to increase their earnings as they’d be saving a lot of gas costs and it completely aligns with the company’s zero-emissions goals. From Monday, Uber drivers can rent 2021 Tesla Model 3 cars through the rental program provided by Hertz. Drivers in Los Angeles, Washington D.C., San Francisco and San Diego will be able to rent the aforementioned Tesla model on Monday while a nationwide expansion will follow in the imminent weeks.
Uber said that the rentals on Hertz Teslas will begin at $334 a week, with the exclusion of fees and tax and promises that the pricing will drop to $299, or even lesser as time goes on. The company also said that initially, only drivers with at least a 4.7-star rating and a minimum of 150 trips can make these rentals.
Uber’s Senior Vice President, in a statement, said that “while this partnership is a step forward to advance electrification on the Uber platform, it’s important to note that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle”.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
