Hertz (HTZ) Stock Jumps 18% as Uber Taps It to Run Its Robo-Taxi Fleet

TLDR

• Hertz stock jumped ~18% after announcing two fleet partnerships with Uber
• Hertz affiliate Oro Mobility will manage charging, maintenance, repairs, and staffing for Uber’s autonomous Lucid vehicle fleet
• The robo-taxi service uses Lucid Gravity SUVs and Nuro’s self-driving tech, launching in the San Francisco Bay Area by end of 2026
• Hertz and Uber will explore expansion opportunities in 2027
• The deal builds on Hertz and Uber’s existing ride-share rental partnership

Hertz stock jumped sharply Thursday after the company announced it is partnering with Uber to support the ride-hailing giant’s robo-taxi fleet operations.

Hertz was up 18.4% in midday trading at $6.63. Uber slipped 0.6% to $74.02.

Hertz Global Holdings, Inc., HTZ

The deal centers on Oro Mobility, a newly created Hertz affiliate. Oro will handle day-to-day operations for Uber’s autonomous vehicle fleet, including charging, maintenance, repairs, cleaning, and depot staffing.

Uber’s robotaxi service uses Lucid Gravity SUVs paired with self-driving technology from Nuro. Lucid stock was also up on the news, gaining around 5.5%.

The service is expected to launch in the San Francisco Bay Area before the end of 2026. Hertz and Uber said they plan to explore expansion opportunities in 2027.

Uber COO Andrew Macdonald said the partnership will help bring autonomous technology onto the Uber platform and speed up the shift to a hybrid network of driver-led and autonomous ride-share operations.

A Shift in Strategy for Hertz

This is not Hertz’s first attempt to align itself with new mobility trends. In 2021, the company made headlines by announcing a 100,000-vehicle EV order from Tesla, which briefly helped push Tesla’s market cap past $1 trillion.

Hertz also announced plans to buy up to 175,000 EVs from General Motors and 65,000 from Polestar. None of those deals were fully completed.

By early 2024, Hertz was offloading its EV fleet at a loss. Higher-than-expected maintenance costs, many tied to Uber drivers renting the vehicles, and Tesla’s aggressive price cuts both contributed to the reversal.

Oro represents a different approach. Rather than owning and renting EVs, Hertz is now positioning itself as an operations and fleet management provider, which sits closer to its core business.

Competitors Are Already in the Space

Hertz is not alone in this market. Rival Avis already handles fleet operations for Waymo, Alphabet’s autonomous vehicle unit.

With multiple robotaxi companies looking to outsource logistics, there is a growing opportunity for third-party operators like Oro.

Uber has deals with dozens of autonomous vehicle companies globally. It has plans to order at least 35,000 robotaxi-ready vehicles from Lucid Motors alone. That starts with 10,000 Gravity SUVs, with another 25,000 based on Lucid’s upcoming mid-sized platform already announced.

Uber also now holds more than 11% of Lucid Motors following its investments alongside those vehicle orders.

Hertz entered Thursday already up 22% in April, and 9% for the year.

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