Hertz Moves from AI Scanners to Robotaxis through Partnership with Uber

      Patrick T. Fallon/AFP via Getty Images

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      Over the past few years, Hertz has been focusing on modernizing its operations. This transition has presented some challenges, particularly for customers who have used its AI inspection scanners. Nevertheless, Hertz is moving forward into the realm of autonomous ridesharing services with the launch of a new subsidiary called Oro Mobility, which is collaborating with Uber.

      A Quartz article about this announcement likens it to the onslaught of confusing streaming services or B2B applications. It states that Oro will be responsible for "the operational upkeep of Uber’s autonomous robotaxi program," which entails Lucid vehicles equipped with a self-driving hardware and software system from Nuro.

      Until the autonomous aspect fully develops, Oro will also manage a fleet of drivers it has hired, which will be accessible via Uber. This service is already operational in Los Angeles and San Francisco, with plans to begin in New Jersey before the summer.

      Uber will utilize Lucid Gravity electric SUVs equipped with Nuro’s autonomous technology, while Hertz’s Oro business will oversee service and maintenance. Patrick T. Fallon/AFP via Getty Images

      This development comes as Uber has become a significant investor in Lucid, now holding an 11% stake in the company. Last month, Uber committed to buying “at least” 35,000 Gravity SUVs; the rideshare company has invested half a billion dollars in the luxury electric vehicle manufacturer thus far.

      Returning to Hertz, regarding what "operational upkeep" entails, the rental company stated that Oro will handle “day-to-day vehicle asset management, including charging, maintenance, repairs, cleaning, and depot staffing.” While it’s easy to be cynical about large corporations profiting from the gig economy, this strategy appears logical for Hertz; the way people engage with vehicle ownership and requirements is evolving, necessitating an adjustment in its business model.

      Since the beginning of the decade, Hertz has sought to venture into new areas, such as its bulk purchase of Tesla and Polestar EVs, many of which were sold off later, resulting in potentially great deals for savvy buyers. However, as noted by TechCrunch, Hertz is not the only player in the autonomous ridesharing field; Avis also made headlines last year with a similar partnership with Waymo, a Google-affiliated company.

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