Uber, Hertz Deal Will Put 50,000 Tesla Model 3 Rental Cars into Ride-Sharing Fleet

 Uber drivers can pay $334 a week to rent a Tesla from Hertz in a pilot program expected to expand across the U.S. by 2023.

man ordering uber
UBER
  • Uber has announced it is partnering with Hertz to offer 50,000 Tesla EVs as rentals for ride-sharing drivers over the next two years.
  • The pilot program will start November 1 in Los Angeles, San Diego, San Francisco, and Washington, D.C., but will expand to other U.S. cities
  • Hertz just agreed to purchase more than $4 billion for 100,000 Tesla Model 3 cars in a deal announced Monday.

    Uber Technologies issued an announcement today that it will offer Teslas to its ride-sharing drivers to rent for a flat monthly fee that will include insurance and maintenance costs. The company will source the Teslas, which Reuters reported will be "mostly" Model 3 cars, from rental giant Hertz. Hertz itself just inked a deal to buy 100,000 Teslas to add to its rental fleet by the end of next year.

    Uber had previously stated it would transition to becoming an EV-only service by 2030 in the U.S., Canada, and Europe. It also started a Zero Emissions Incentive program that rewards drivers who use EVs by paying them $1 more per trip, up to a maximum of $4000 a year. The Teslas will also qualify to be called Uber Green or Uber Comfort rides, which charge riders a premium.

    uber announcement about tesla rentals
    UBER

    The pilot program will start in Los Angeles, San Diego, San Francisco, and Washington, D.C., starting on November 1. Hertz will make the total 50,000 Teslas available to Uber drivers by 2023, Uber's statement said. Initially, drivers who rent the EVs will be charged $334 per week, which will include insurance and maintenance costs, but the price will drop to $299 "or lower" later. To apply, drivers must have a 4.7 or higher rating and have completed at least 150 trips with Uber.

    Uber already has programs to encourage drivers to use an electric vehicle in their work. The service's website offers an $8000 rebate for purchase of a 2021 Nissan Leaf or $6000 for a 2022 Nissan Leaf. Uber also offers $2500 rebates for purchase or lease of a 2021 Chevy Bolt EV, in addition to deals the buyer can get from the Chevrolet dealer or GM. Uber drivers can also rent an unspecified EV from Avis for $260 a week, with a fee of $65 a week for unlimited charging.


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