Citing a low return on investment, Hertz will close all its
car-sharing service operations in the United States by September, though it will
continue the service in some international markets, a spokesperson confirmed.
The car rental company launched
Connect by Hertz in 2008 to compete with Zipcar, which Avis Budget Group
acquired in 2013. Hertz later rebranded the offering to Hertz On Demand and
then to Hertz 24/7. In the United States, the service had locations in two
major metro areas, Orlando and New York/Hoboken, N.J., and Hertz also offered a
“small dedicated fleet” for car-sharing services on corporate and college
campuses. Hertz began closing those operations in July and expects to complete
the process next month, according to the spokesperson.
Hertz also is closing some car-sharing locations in Europe,
according to the company.
“We have determined that there is greater return on
investment in our core car rental businesses and in European corporate car
sharing, especially considering the significant incremental investment required
to build out Hertz car sharing on an international scale,” according to a
statement from Hertz. “While we are discontinuing our small presence in the
U.S. and certain European cities, we are not exiting the business altogether.
We continue to see success with car sharing in certain segments
internationally.”
Hertz car sharing also will continue in Sydney, and in
Europe, carpooling, fleet-management services will go on, as will van hires via
retail partnership.