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According to Hertz in their 2022 Q2 report [0] (pg. 11), they are spending 50-60% on EV maintenance compared to ICE. [0] https://ir.hertz.com/static-files/bf47

• asah 4y ago
  This seems due to EVs being primarily rented to Uber/Lyft drivers, where they experience 5-7x fewer "touches" due to weekly rentals. (common sense: cleaning, body and interior repairs, tires, windows/locks, climate control, etc should all be the same - implying that motor-train maintenance is half the total maintenance cost, and the EVs need zero maintenance...) --copy/paste-- Stephen M. Scherr - Hertz Global Holdings, Inc. - CEO & Director The answer is unequivocally yes. In fact, last week, we did kind of re-underwrite on the EV fleet, how it's playing, how it's presenting relative to what we thought it would do on the initial decision to go in. So I'd say a couple of things. First of all, we continue to take delivery of Teslas, and we'll continue to do that, number one. Number two, I think you should expect in the coming months that you'll see announcements from us about purchase of electric vehicles in sizable quantity from other OEMs as we try to sort of build out kind of a broad population of vehicles across a range of OEMs, and we'll see those at very attractive kind of price entry points. Third, we are capturing, I think, as I said in the remarks, kind of a $30 to $35 premium on this. That premium has been fairly sustainable. And in the TNC channel, we're renting these for about $334, $335. We have found kind of just the right price point where, given all sorts of externalities around economics for an Uber driver, they want to and are excited about renting that, and they can turn a profit there. What that means for us, by the way, particularly in the TNC side, is fewer touch points on the car over a course of a month, maybe by as many as 5 to 7x. That reduces cost considerably. We're obviously passing some of that on because the weekly rental is lower for the TNC driver than the per diem or per day rental out to the normal RAC. On maintenance, I think Kenny said to you, we are running kind of 50% to 60% of what maintenance costs are on ICE vehicles. That's roughly in line with where we are. If there's any one surprise, it's probably slightly higher expense on tires, but not much more, and that's embedded in the figure I'm giving you. So I would say, overall, we're very pleased with the results. They're coming in roughly in line with what we thought when we first underwrote the move in this strategic direction.
  • ZeroGravitas 4y ago
    I think those are two separate points. They've found a profitable market where they can rent out EVs to Uber drivers slightly more long term which is cheaper for them and they pass some of that onto the drivers creating a win win. But, renting more cars out to professional drivers should in theory increase mileage and so maintenance. I believe by maintenance here they're not talking about the touch points, but what most people would think of when you say "maintenance". As they said, lower maintenance was not a surprise. It's been widely reported by fleets of EVs as a benefit.
  • jeegsy 4y ago
    TIL: People rent cars to drive for Uber