Hertz faces a tough battle for market supremacy in the UK as five or six major rental firms jostle for fleet business and to secure vehicles from manufacturers at competitive prices.

New innovations that enable the company to stand out from the pack are essential and Hertz has them in abundance.

Helping to drive business over the past couple of years has been Connect, a pay-as-you-go programme which offers fleets access to cars for short-term use at designated parking bays in major cities.

The company anticipates a surge in demand for Connect over the next 12-18 months, raising sales in the corporate sector.

Also high on the agenda for 2011 is the environment as Hertz commits to driving down CO2 emissions further with global partnerships with Nissan, Mitsubishi and Renault for the supply of electric vehicles.

Topping its achievements was winning the Best Short-term Rental Company award at this year’s Fleet News Awards.

Fleet News: How did you feel winning the award?

Neil Cunningham: I was delighted. We previously won the category around eight years ago and it felt great to be winning again. The award is a great recognition from the industry that highlights the successes and achievements we have had.

FN: Hertz spent 2010 driving towards greener cars. How has the fleet industry reacted to this change?

NC: There is a big interest from corporate accounts for lower emitting cars. We are being increasing asked about CO2 as fleets are mindful of benefit-in-kind tax.

We get a sense that corporate companies are far more wary of emissions then they used to be. In the past they were more concerned about engine size and speed, now it’s all about the emissions.

We make sure we are in a position to react to companies when their needs change.

FN: Connect by Hertz was extended in 2010 into corporate offices. What are your aspirations for the service during 2011?

NC: Connect by Hertz offers a new, flexible approach for fleets. This has been a big project for us and we think this will give us a new platform to expand upon.

It enables multiple keyless entries which would be ideal for pool fleets.

The traditional pool model causes problems for companies, especially when it comes to the logging of the cars and tracing of drivers. Now they can find out exactly who is driving a vehicle and where they drove it.

Every driver will be given a card which is allocated to a particular vehicle. All drivers need to do is book the car, then it will know they are coming.

When you need multiple drivers of a car and you want to control where the car is going and what drivers are doing, this model has endless benefits for customers.

We expect this new wave of rental technology to really take off. I reckon anyone who has got a pool fleet will see at least a 25% saving on pool cars just by using it.

FN: You have recently announced electric vehicle partnerships with Nissan, Mitsubishi and Renault. Are there any more in the pipeline?

NC: We are talking to all manufacturers that are in the electric vehicle market, but some are more reluctant than others. I think they believe the rental market has a poor handover process and that the customer is not educated to drive an electric vehicle, which does not apply to the Hertz model.

Connect by Hertz is a much more regulated experience with a hands-free care centre connection in the car. The car is opened and, if a problem is detected, the driver can press a button and automatically be connected to the care centre.

Manufacturers are concerned about the available training for drivers in the rental market. With Connect by Hertz we have a robust database and we can talk to customers once they are in the car.

What manufacturers should bear in mind is electric cars can be plugged into any domestic socket which alleviates some of the risk of the battery going flat.
 

FN: Hertz currently has 6% of its total volume attributed to the fleet industry. How are you looking to grow this?

NC: Car sharing isn’t for everyone everywhere, traditional car rental will still be very strong. The car club concept works best when there are multiple users and short journeys. The question is, will rental profiles change? I think they will in cities, but rural areas will likely stay the same for the foreseeable future.

Because we are a short-term rental company, we can offer flexible rental, but we cannot compete with long-term rental companies.

FN: How are the Hertz vehicles procured?

NC: Both by buy-back and outright purchase. We think it is right to have a balanced approached, it gives us greater flexibility.

It also gives us the possibility to play the market a little bit and we have the opportunity, if when there is a downturn in the market, to defleet vehicles rapidly.

FN: What are the business’s plans for 2011 and 2012?

NC: Onwards and upwards ideally. We have been very successful recently and have won some key leasing company accounts.

That is why it is great to win the award from Fleet News as it raises our profile in the fleet industry. We have also won a new account with LeasePlan and our van business is doing really well.

We are taking advantage of some newly-available business from other companies that have closed recently.

Our commitment to the environment will continue as we hope to build more relationships with manufacturers and businesses as the momentum for electric vehicles will continue to grow. 2011 shall be an interesting year for us, hopefully one that is full of growth and continued success in the fleet industry.

 

Connect by Hertz currently has more than 700 vehicles, 20,000 members and more than 200 locations worldwide, including corporate offices and universities.

Hertz believe this new approach to short-term rental could revolutionise company pool car fleets and produce substantial savings for companies.

The likes of B&Q and British Airways are already on board and with manufacturer relationships building, electric vehicles may see an increase in uptake.

Cunningham believes that electric vehicles and car clubs offer the perfect match. He predicts that demand for EVs will increase quickly as new cars come to market.

Looking to the future, the environment will remain high on the agenda for Hertz as it looks to enhance efficiencies and use the latest technologies to help fleets continue to cut costs and operate more efficiently.

Hertz UK factfile

General manager UK Neil Cunningham

Fleet size 775,000 (global)

Operations 141 sites (UK)

Size of Connect fleet 700

Judges Comments: “Good, clear rental initiatives and outstanding levels of innovation.

"Hertz clearly goes the extra mile on customer service and is using the latest technologies with great impact for its
fleet customers.

"The environment is also high on the agenda with its green collection.”

 

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