Rental car company
will supply up to 50,000
drivers, with drivers for the ride-hailing group offering services with the rented electric vehicles in the U.S. as soon as next week.
Uber (ticker: UBER) drivers will be offering services with rented Tesla (TSLA) cars from Nov. 1, initially in Los Angeles, San Francisco, San Diego, and Washington, before a nationwide rollout, Bloomberg first reported Wednesday.
The report cited a statement on Uber’s website that appears to no longer be available. Matt Keirle, who leads Uber’s communications team in the U.K. and Ireland, confirmed the existence of the Hertz deal to Barron’s.
Hertz (HTZZ) said Monday that it would order 100,000 Teslas by the end of 2022 and that the electric vehicles would make up more than 20% of its global fleet. That deal—Tesla’s largest with a rental company—sent shares in both Hertz and Tesla surging, helping the electric-vehicle stock top $1 trillion in market capitalization for the first time. Hertz emerged from bankruptcy at the end of June.
It’s unclear whether Hertz’s 50,000-vehicle deal with Uber involves half of the fleet it has ordered from Uber. Hertz didn’t immediately respond to a request for comment from Barron’s.
Tesla rentals for Uber drivers will start at $334 a week before dropping to $299 as the program gets underway, and drivers must have completed at least 150 trips and have at least a 4.7-star rating to be eligible, the Bloomberg report said.
Uber was 0.1% higher in premarket trading Wednesday, while Tesla shares were just above flat. Hertz stock trades in over-the-counter markets and closed 1% higher Tuesday.
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