Rental giant Hertz is making a major change to its 500,000-car fleet: ‘The most affordable entry point for drivers’

Hertz is embracing its name and using it to empower the future of electric vehicles (EVs) in a recent move to accelerate the electrification of its fleet of rental cars. CNBC reports that by the end of 2024, the rental giant plans for EVs to make up 25% of its 500,000 vehicles, up from 10% in 2023.

With deals to purchase 330,000 EVs from Tesla, Polestar, and General Motors, Hertz will soon be providing savings for customers and reducing planet-overheating air pollution.

In 2022, the globe-spanning rental car company announced a 12% increase in annual profits amid the push to electrify its fleet, which the company partially credited to its EVs being between 50-60% cheaper to maintain than its gasoline-powered cars.

Hertz’s latest announcement is more than just a savvy business play; it’s a significant development in the EV revolution and for the automobile market as a whole. EVs offer many advantages over traditional internal-combustion engine cars, including lower operating costs, tax incentives, and cleaner air, according to the U.S. Department of Energy.

Hertz’s move could have a ripple effect on everyday people and the environment in numerous ways. One potential impact is that as companies like Hertz buy more EVs and demand continues to increase, the cost of these vehicles will come down, as reported by Forbes. This can lead to more affordable used EVs entering the market, benefiting consumers who are eager to go electric but may be put off by high prices.

Furthermore, such an initiative has potential environmental benefits, as more EVs on the roads means less pollution from transportation. Indeed, as reported by CNBC, half of Hertz’s rentals come from business travelers, many of whom are increasingly choosing EV rentals as part of their companies’ efforts to reduce their negative environmental impact for Environmental, Social, and Governance (ESG) initiatives.