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Hertz plans for 3,000 electric vehicles by the end of the year

Hertz Global Holdings currently has electric vehicles and charging stations installed in more than 30 markets, and it plans to have about 3,000 electric vehicles across 80 markets by the end of the year, CEO Stephen Scherr said Wednesday during the company’s first-quarter earnings call. These cars “command higher prices and pull lower economic costs,” he added.

Scherr also noted an “evolving phenomenon,” also quoted in February by former Hertz interim CEO Mark Fields, that electric vehicles have “great appeal” to business customers. Company employees rent the cars, but “EVs [are] to satisfy their own [environment, social and governance] and CO2 footprint targets, “said Scherr, who stepped into his role on Feb. 28.” It’s an interesting dynamic. “

The company is accelerating the addition of electric vehicles, among other actions to meet demand that significantly exceeds supply, “which is reflected in pricing,” Scherr said.

Hertz reported total revenue in the first quarter of 2022 of $ 1.8 million, an increase of 40 percent year over year, and an adjusted net income of $ 403 million against a loss of $ 52 million the year before. It also expanded its fleet to about 481,200 vehicles from 367,600 per. January 31, 2021 to an increase of 31 percent. Vehicle utilization remained stable at 75 percent in the quarter against 76 percent for the 1st quarter of 2021.

In America, quarterly revenue was $ 1.56 billion, up 61 percent year-over-year. The region’s fleet expanded to about 373,200 vehicles compared to 300,600 last year, an increase of 32 percent. Vehicle utilization remained unchanged at 76 percent.

Hertz’s international segment reported $ 252 million in revenue, a 36 percent increase from $ 186 million reported per year. January 31, 2021. The company expanded its international fleet by 25 percent to nearly 83,600. However, vehicle utilization fell to 68 per cent compared with 75 per cent the year before.

Despite the strong results, corporate and international inbound segments remain “significantly below pre-pandemic levels,” Scherr said, adding that corporate bookings are currently around 63 percent of 2019 levels, while international inbound bookings are at around 35 percent. “There is still a significant demand that can be recovered to get to a normal state,” he said.

Overall, the first quarter was twofold. The first six weeks were softer than expected due to the effect of the Covid-19 omicron variant and lower volumes, Scherr said. Demand began to rise in late February, and “March was the first month since the start of the pandemic, with revenue exceeding the 2019 level,” he said. “We see that momentum continue into April.”

Utilization of rental options improved from 66 percent in January to 80 percent in March. “It’s a good indicator of that momentum as well as a reflection of stability in demand,” Scherr added.

Hertz also announced on Wednesday that Ned Ryan would join the company as product development manager with effect from May 9th. Ryan will “monitor efforts to deliver connected products and technology to enhance the customer experience,” according to the company. Ryan founded and sold Breeze, a flexible ride-sharing financing platform, and Canvas, a vehicle subscription service. Most recently, he worked at Ford at new, digitally connected mobility companies, according to Hertz.

RELATED: Hertz Q4 2021 earnings

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