Amazon is one of the world’s fast-growing companies with its wings spread over many nations, acquiring vast resources, and other businesses. In its acquisition spree, Amazon takes over those companies that may assist her in furthering its businesses and those that can open new opportunities. Does Amazon own Hertz?
Amazon does not own Hertz and has neither disclosed any plan to acquire the company any soon despite all the above. Hertz Global Holdings, Inc, own the Hertz Corporation.
About Hertz and Amazon
Hertz Corporation is a car rental company owned by Hertz Global Holdings inc. The company was founded in 1918 in Chicago, Illinois, U.S, by Walter L. Jacobs, and its headquarters are based in Estero, Florida, United States. On the other hand, Amazon is the leading American multinational technology company with diversified business sectors, including e-commerce, cloud computing, digital streaming, and artificial intelligence.
Despite showing no relationship between each other, Amazon and Hertz do share some similarities and spot some differences. This article shall delve into some similarities, differences, and more details about the two companies. Read the article to the bottom if you want to learn about this content.
Similarities
In its quest to maintain its world-leading position in most of its lines of specialization, Amazon continues to acquire more businesses and set up other new businesses. Amazon, like Hertz, has ventured into the car rental and leasing industry, a relatively new movement. Like any other new venture, Amazon supports the business with its well-developed infrastructure and the existing market. For instance, the company has opened a car rental and leasing extension in many Nations, including UAE, these cars are ordered and delivered n Amazon just like any other item.
Furthermore, Amazon has acquired Zoox, an automotive company that develops self-driving vehicles. On the other hand, Hertz is one of the largest car rental companies worldwide in fleet size, sales, and locations. The company operates in more than 160 countries with more than 12000 corporate franchises in North America, Africa, Asia, and the Middle East, among other spheres.
Subsidiaries
Amazon and Hertz both have multiple subsidiaries. For Amazon, though, these subsidiaries are diversified in industries, while for Hertz, the subsidiaries are specific to the car and leasing business.
As of 2022, Amazon has quite over 100 subsidiaries in diverse industries. Some of the signs of such subsidiaries are Whole Foods Market was acquired by Amazon for $13.7 B; Zappos was acquired in 2009 for $1.2B, Metro Goldwyn-Mayer was acquired in May 2021 for $8.45B; and Zoox, a US-based company that acquired on June 26, 2020, for $1.2B.
On the other hand, to further its mission and to spread its influence on the car rental and leasing business, Hertz global Inc, through Hertz Corporation, has acquired several other businesses. The acquired businesses include Dollar Thrifty Automotive Group 2012, a rental company with over 840 locations in the United States and Canada, and over 1,500 franchise locations in more than 70 countries. In addition, Hertz Inc. has since acquired Donlen Corporation, which provides innovative fleet leasing and management solutions for corporate fleets across the United States.
Hertz rental brands
The Hertz rental car fleet consists of a range of vehicle manufacturers such as Toyota, Mazda, Volvo, Jaguar, Porsche, Mercedes, Infiniti, BYD, Cadillac, Land Rover, BMW, Jeep, and Lincoln, among brands. The company’s total fleet as of 2020 is at around 424,000, a drop from 534,000 in 2019 due to travel restrictions amid the coronavirus pandemic more so, the pandemic’s impact on airports in the United States
Hertz Rental fleet
The above brands of vehicles rented by Hertz Inc can be further classified into major categories that may include the following
- The Green Collection: This category features an environmentally friendly fleet such as the Toyota Pries, Ford Fusion, Buick, LaCrosse, Hyundai Sonata, and Toyota Camry. Hertz inc launched this fleet in September 2006,
- Heavy equipment rentals: A category features heavy equipment fleets such as graders, Excavators, Backhoes, Pipelayers, scrappers, Compactors, Track loaders, underground, hydromantic, and mining, among other categories for construction and industrial needs. The Hertz incorporation launched this division in 1965.
- Specialty cars: this fleet consists of special cars such as sports cars, convertibles, and others that may fit the category. The category was introduced by Hertz in 2016 and features cars such as Chevrolet Corvette, modified Shelby Ford Mustang GT, and Jaguar XK-Es
Are Amazon and Hertz in business?
As of 2022, the two companies are not engaged in any business. However, unofficial rumors have it that Amazon may conduct delivery and transport business using the Hertz fleet. Another possibility of the two working together lies in Amazon’s infrastructure and the ability to elevate the Hertz business by e-commerce.
In conclusion, Amazon and Hertz are two independent companies, with Amazon running large-scale diversified businesses while Hertz specializes in car rental and leasing business with a little diversification. However, the two may work together as they have common compatibility aspects.
FAQs
What other services do Hertz provide?
Hertz has an added array of services: Hertz calm management, Hertz lease, Hertz Entertainment services, and Hertz 24/7. These added services are extensions to the main service and help to facilitate it
Does Amazon use the Hertz fleet for deliveries?
No, Amazon has not officially contracted Hertz fleets for deliveries and transportation. However, private carriers may deliver using Hertz cars
How was Hertz affected by the COVID-19 pandemic?
The restriction on movements reduced the company’s fleet from 534,000 in 2019 to 424,000 in 2020, losing major revenue and almost becoming bankrupt.
