Hertz Global Holdings Inc. (HTZ) experienced a significant stock surge of over 20% on Thursday following the announcement of a new affiliate, Oro Mobility, designed to manage Uber Technologies Inc.'s (UBER) robotaxi operations and human-driven fleet across major U.S. markets.
The strategic partnership allows Hertz to leverage its core competencies in vehicle procurement, maintenance, cleaning, and logistics to enter the commercial mobility fleet space, moving beyond its traditional airport rental model. For Uber, the deal outsources the operational backbone of autonomous vehicle deployment, including charging, repairs, cleaning, and depot staffing.
Oro will initially support Uber's autonomous program using Lucid vehicles equipped with Nuro's self-driving technology, with a planned launch in the San Francisco Bay Area later this year. The companies have indicated a broader rollout could follow in 2027. The service is already operational in Los Angeles and San Francisco, with Northern New Jersey expected to go live this spring.
Hertz CEO Gil West described Oro as a way to apply the company's fleet expertise to what he called “the next era of mobility.” Uber President and COO Andrew Macdonald highlighted the partnership as an opportunity to “bring the best autonomous technology” onto Uber’s platform.
As of 11:50 a.m. EDT, Hertz shares traded at $6.80, up $1.20. Uber shares slipped 38 cents to $74.09. Avis Budget Group Inc. (CAR), Hertz’s primary U.S. rental-car rival, also saw its stock rise, surging $15.88 to $197.03.
The announcement comes as Hertz prepares to report first-quarter earnings on May 7. Investors are keen to see tangible progress amid the company’s expensive fleet overhaul, with vehicle depreciation continuing to weigh on results. Hertz reported 2025 revenue of $8.5 billion and a net loss of $747 million, though it noted a year-over-year profit improvement of over $2 billion and ended the fourth quarter with approximately $1.5 billion in liquidity.
Competition in the sector remains intense. Avis Budget shares recently slid after a second consecutive quarterly loss, as U.S. rental-car companies grapple with stubbornly high costs, expensive debt, and heavier depreciation. Losses tied to earlier electric-vehicle investments have burdened both Avis and Hertz.
While the Oro Mobility launch provides clearer contours for Hertz’s broader strategy—aiming to create a platform spanning rental, service, fleet, and mobility—key details remain undisclosed. The companies have not released revenue figures, fleet numbers, pricing specifics, or the contract duration. Their statement also flagged risks, cautioning that projected gains could shift if market or financial factors do not materialize as expected.
The May 7 earnings report will carry added weight as investors assess whether Hertz’s core rental segment is generating enough cash to support its new mobility ventures, even as the company and its rivals face persistent vehicle costs, volatile used-car prices, and a resilient but demanding travel sector.
