Tesla’s Elon Musk might have a new best friend -- Hertz CEO Mark Fields. After Fields announced that Hertz ordered 100,000 Tesla Model 3 electric vehicles, he fleshed out his plans a little further by saying that the order could actually double.
According to Electrek’s coverage, Hertz’s original deal stipulated that the rental car company would keep 50,000 of the Tesla vehicles it ordered and make the other 50,000 available to Uber drivers. However, the deal has an option that allows Hertz to procure another 100,000 vehicles that would become available to Uber drivers, giving them 150,000 total Tesla vehicles to work with.
The Uber opportunity is particularly enticing to Fields. Hertz has a long-standing relationship with Uber drivers because many of them rent their vehicles from Hertz rather than buying their own.
It’s as close to a no-brainer as an Uber driver can get. Hertz would carry the responsibility of paying for the Teslas and they would get an electric vehicle that offers them an environmental upside and lower costs. In a blog post, Uber claims that when rideshare drivers go electric, they gain 3 to 4 times greater emissions savings than average car owners.
The Tesla rentals will start out at $334 a week and, as the program gets its footing, fall below $300. That cost includes insurance and maintenance. But Hertz isn’t letting just any Uber driver get their hands on one of the rentals. For the initial launch period, it requires that drivers have at least a 4.7-star rating and at least 150 trips under their belts to be eligible for the rental program.
“We believe this will be a win-win for drivers who rent: a chance to both increase earnings and reduce environmental impact,” Uber’s Andrew Macdonald, SVP of Mobility and Business Operations, wrote in a blog post.
“Drivers can enjoy gas savings as well as higher earnings potential due to Uber’s Green Future Program, which provides incentives – such as $1 more per trip up to $4,000 annually – for drivers to transition from gas-powered vehicles to EVs. They’ll also have access to the Tesla Supercharger network and to Uber’s exclusive EVgo discounts.”