What's Happening?
Hertz has announced an update to its online shopping website, allowing customers to complete nearly the entire car buying process online. This development marks a significant shift in Hertz's retail strategy, as the company aims to make retail its primary car selling channel. The new platform will enable customers to secure financing, receive trade-in offers, and complete other necessary steps for purchasing a vehicle online. Hertz is also launching a promotional campaign featuring football star Tom Brady to highlight these changes. The move is part of Hertz's broader turnaround strategy following its bankruptcy filing in 2020.
Why It's Important?
Hertz's new e-commerce platform represents a major advancement in the car rental industry's approach to vehicle sales. By facilitating online transactions, Hertz can improve vehicle resale values and accelerate fleet turnover, which is crucial for maintaining profitability. The initiative also positions Hertz to compete more effectively with other car sales channels, potentially reducing reliance on wholesale auctions that offer lower prices. This strategic shift is part of Hertz's ongoing efforts to recover from the financial challenges posed by the pandemic and to innovate in its business model to enhance profitability.
