Re:Hertz's Bet on Teslas Went Horribly Sideways
by m463 on Thursday April 04, 2024 @06:49PM
(#39936763)
I think you're right. The actual rental car model is to garner large discounts from the auto manufacturer, rent the car for a time, then sell it via the rental car used-car lot.
The purchase discount (maybe fleet rate) is usually wrapped in a contract - the car must NOT be sold within a certain time or under a certain mileage - and in this way does not compete with the manufacturer's car dealers.
Hertz and Tesla did not have any sort of contract like this. This means that Hertz did not have any concessions from Tesla. Instead of Tesla having a special relationship with Hertz - a car discount, guaranteed quick repairs, possibly special rental-car software helping renters onboard with the car - Hertz got NOTHING.
It should have gotten something, at minimum some sort of fleet rate. It was a VERY good customer. Instead Tesla gave nothing and got a lot of bad PR in the end.
The purchase discount (maybe fleet rate) is usually wrapped in a contract - the car must NOT be sold within a certain time or under a certain mileage - and in this way does not compete with the manufacturer's car dealers.
Hertz and Tesla did not have any sort of contract like this. This means that Hertz did not have any concessions from Tesla. Instead of Tesla having a special relationship with Hertz - a car discount, guaranteed quick repairs, possibly special rental-car software helping renters onboard with the car - Hertz got NOTHING.
It should have gotten something, at minimum some sort of fleet rate. It was a VERY good customer. Instead Tesla gave nothing and got a lot of bad PR in the end.