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So, looking at a car rental company like Hertz, aren't they basically a car equivalent of WeWork, minus the hype? With the same fundamental issue: their custom
by rossdavidh 6y ago
So, looking at a car rental company like Hertz, aren't they basically a car equivalent of WeWork, minus the hype? With the same fundamental issue: their customers can (and eventually will) all go away at once, while they are left with a lot of long-term commitments to pay on what they were intending to rent out.
Now, a properly set up rental company would have hedged this, so that in the case their market disappears on them, they have survival money coming in from some financial option or other. But, I'm guessing Hertz did not.