Hertz Continues to Outshine Avis With Tech Investments for Operations

Car rental companies are quickly expanding into a variety of different services, from package delivery to ridehailing, as the rise of startups like Uber and Lyft increases competition. So far, for Hertz, these new endeavors are paying off. The car rental company posted solid results for the third quarter of 2019, building on its revenue growth from last quarter with a carefully managed investment strategy. This is in sharp contrast to Avis, which saw a drop in net income, due to poor fleet management, increasing competition in the corporate sector, and rising costs from its newest investments. Both companies reported results in the past two weeks. Both, however, struggled internationally, where the uncertainty surrounding Brexit, along with other geopolitical issues, led to lower demand in Europe. But while Hertz was able to recover from this, Avis was simply dragged down further. Revenue inc