Hertz Global Holdings has launched a new operating company that will support Uber's autonomous robotaxi program and provide to Uber a fleet of vehicles operated by employee drivers, the companies announced Thursday.
The new operating company, Oro Mobility, will support Uber's autonomous robotaxi program with "day-to-day vehicle asset management, including charging, maintenance, repairs, cleaning, and depot staffing." Services are expected to launch in the San Francisco Bay Area later this year, according to the companies.
The new company also will provide for Uber a fleet of vehicles operated by Oro-employed drivers, according to the companies. Following a pilot in Atlanta last year, Oro now is active on the Uber platform in Los Angeles and San Francisco, with northern New Jersey expected to launch this spring.
The states where Oro employee drivers will operate vehicles are those in which Uber has paid settlements in lawsuits regarding driver classification.
Uber in 2022 paid $8.4 million to resolve a California class-action lawsuit alleging misclassification of drivers as independent contractors rather than employees. This settlement did not overturn Proposition 22, which classifies drivers as independent contractors and was passed by California voters in 2020 and upheld by the California Supreme Court in July 2024.
Also in 2022, Uber paid $100 million to the New Jersey Department of Labor and Workforce Development's Unemployment Trust Fund for misclassifying drivers as independent contractors. The state uses an "ABC" rule to determine whether a worker is an employee or independent contractor. If a company cannot prove all three parts of the ABC test, the individual in question is classified as an employee.
In addition, Uber along with Lyft in 2024 paid $328 million in New York to settle claims of employee misclassification.
Uber did not immediately respond to a question if driver classification laws were influential in where Oro employee drivers would operate.
Hertz and Uber have an existing rideshare rental partnership. "Oro represents the next phase of the companies' collaboration and reflects Hertz's strategy to diversify beyond its core Rent-A-Car business," according to the companies.