Traditional car rental companies that want to survive in an age increasingly dominated by digital technology have to expand beyond their core business. This means partnering with ridehailing apps, such as Uber and Lyft, which both Hertz and Avis have done, or using their fleet to provide vans to delivery services, which again both car rental companies have done.
The problem is, all of these endeavors cost money. Investing in them is a big undertaking, especially since each venture comes along with its own risks. While both Hertz and Avis have been proactive in diversifying into new, alternative operations, they differ significantly on approach.
Hertz has put a heavy emphasis on fleet management and has upgraded its internal operations, bringing it all onto the cloud. This helped keep its fleet tight and its costs down, pushing up prices and increasing revenue in the third quarter of 2019. Avis, meanwhile, lagged behind.
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