A new two-tiered vehicle subscription service from car rental company Hertz includes one tier that offers full-size sedans, small SUVs and trucks and another tier that offers luxury sedans, regular SUVs and large trucks.
In announcing the new service — called Hertz My Car — the company said it will give customers more flexibility and freedom in meeting their transportation needs. The service is available in Atlanta and Austin, Texas.
Here’s how the new program works: Hertz My Car subscribers can choose from two subscription tiers, and Tier One includes full-size sedans, small SUVs and trucks for $999 (excluding taxes for both tiers). Also for both tiers, the service charges a $250 one-time enrollment fee.
For Tier Two, subscribers can choose from luxury sedans, regular SUVs and large trucks for $1,399. Hertz said in a news release that to ensure they always have the vehicle that best fits their needs, customers can exchange their vehicle twice a month to a different make or model within the tier.
Vehicle maintenance, roadside assistance, and vehicle damage are covered, and limited liability protection is provided in the monthly subscription.
The company said Hertz My Car is its first subscription service in the U.S. that expands on its multi-month rental program. Hertz also recently launched My Hertz Weekend, which is a weekend vehicle subscription program in Italy.
Hertz noted shifting consumer vehicle ownership and leasing preferences, sourcing a Cox Automotive survey showing that almost 40 percent of survey participants said owning a vehicle is not necessary. Those 40% said access to transportation is necessary, however. But 57% of urban respondents said that for getting from point A to point B, private vehicle ownership is not necessary.
"As we see consumer transportation needs change, it's an exciting time to further evolve our products and services to deliver on our value proposition, said Hertz senior vice president of brand Jayesh Patel. “At Hertz, we're here to get you there. We feel well positioned to lead in vehicle subscription services. We've seen growth in our longer-term rentals in recent years, which we believe is one of several positive indicators the time is right for this service. We also have a strong and consistent focus on enhancing our customers’ experience, including recent innovations such as our redesigned mobile app and Hertz Fast Lane powered by CLEAR that gets customers on the road faster than before.”
Patel also said that with Hertz My Car, customers can choose vehicles to best match their needs, and the program provides flexibility in vehicle ownership and maintenance costs. That could especially appeal to people looking for alternatives to owning or leasing a car, Patel said.
“Atlanta and Austin are prime testing grounds with diverse and progressive communities, and we look forward to combining the insights we gain there with our fleet management and service expertise to expand Hertz My Car, leveraging our extensive network of more than 3,500 Hertz locations nationwide,” Patel said.