At first blush, Hertz offering a new monthly service starting at $999 called My Car in Austin and Atlanta is not so transformative. After all, they rent out cars already.
But it really is because the company is looking to compete with a car lease.
We know of Uber and Lyft but Hertz also has to deal with monthly subscription competition from Mercedes who has plans starting at $1,095, Audi at $995, Cadillac starting at $1,800, Enterprise Rent-a-Car and others.
Point being – Hertz saw the competition coming from everywhere. Other rental competitors. Car makers, Ridesharing services and worst of all – Tesla… Elon Musk says you can buy a Tesla and $30,000/year from it autonomously as it becomes part of a future car-sharing service.
Sure, it seems incredible but FUD works and will likely mean more Tesla sales.
Back to Hertz – the one trend they obviously recognized thanks to Uber is less attachments to a particular vehicle.
This is where My Car comes in.
Hertz also brings a lot of advantages to the table. A huge brand name, massive auto inventory and reach, lots of locations and finally, they can offer a wide range of vehicles – not just one manufacturer.
They also have the ability to bring new cars from any manufacturer into the program at any time. With a car-company-specific plan, that won’t happen.
So in this case the transformation is subtle but meaningful as it takes into account changing consumer tastes, new competitors and adjusts accordingly.
It will be interesting to see how it all plays out but one thing’s for certain…
If you stand still, you will die. You have to always move, innovate and pivot to compete in today’s world.
Where do organizations go to learn more about Digital Transformation? The world’s only Future of Work Expo (collocated with the ITEXPO #TechSuperShow) of course. Feb 12-14, 2020 in Fort Lauderdale, Florida.