Hertz Global Holdings, known as Hertz, is an American car rental company based in Estero, Florida. With a 36% market share in the United States, Hertz is one of the three major rental car holding companies. Operating in 160 countries worldwide, Hertz has a strong presence across North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand.
Despite filing for bankruptcy in May 2020 due to the impact of the COVID-19 pandemic, Hertz emerged from bankruptcy in July 2021. In 2021, the company reported a revenue of $7.336 billion, boasting total assets worth $19.783 billion.
Key Takeaways:
- Hertz operates several brands including Hertz, Dollar Rent A Car, Firefly Car Rental, and Thrifty Car Rental.
- With a 36% market share, Hertz is one of the three major rental car holding companies in the United States.
- Hertz operates in 160 countries globally, spanning multiple continents.
- Despite filing for bankruptcy in 2020, Hertz successfully emerged from bankruptcy in 2021.
- In 2021, Hertz reported a revenue of $7.336 billion and total assets worth $19.783 billion.
The Early Years and Ownership Changes
Hertz Global Holdings, known as Hertz, has a rich history that dates back to its founding in 1918. The company was originally established as Rent-a-Car Inc. by Walter L. Jacobs. However, it was under the ownership of John D. Hertz that the company truly flourished and became a household name. In 1923, John Hertz, who was the owner of Yellow Truck and Coach Manufacturing Company, purchased Rent-a-Car Inc. and renamed it Hertz Drive-Ur-Self System.
Under John Hertz’s leadership, Hertz Drive-Ur-Self System quickly expanded its services beyond the United States. In 1938, Hertz entered the Canadian market, followed by its expansion into Europe with the opening of its first location in France in 1950. The brand continued to grow, and in 1953, John Hertz repurchased the company and renamed it The Hertz Corporation.
Throughout its history, Hertz has seen several ownership changes. General Motors acquired the company in 1957, but it was later sold to UAL Corporation in 1985. In 1987, Hertz found a new owner in Park Ridge Corporation, a subsidiary of Ford Motor Company. The most recent change in ownership occurred in 2005 when Hertz was acquired by a consortium consisting of Clayton, Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global Private Equity.
The Car Rental Industry and Hertz’s Competitors
When it comes to the car rental industry, Hertz is one of the major players, competing with Enterprise Holdings and Avis Budget Group. Together, these three companies dominate the domestic car rental market, accounting for a staggering 95% of the industry. This level of dominance showcases the consolidation that has occurred within the car rental sector.
As the industry has evolved, companies like Hertz have strategically expanded their brand portfolio to cater to different customer segments and price tiers. This means that Hertz, alongside its competitors, offers a range of options to suit various budgets and preferences. This consolidation has allowed larger companies to benefit from cost efficiencies in acquiring and maintaining their car fleets.
However, it’s worth noting that smaller car rental companies can also thrive by offering competitive pricing and specialized services. While Hertz and other major players may have the advantage of scale, customer satisfaction with both large and small rental car brands remains comparable. In fact, according to the J.D. Power 2014 North American Rental Car Satisfaction Study, customers find satisfaction with rental car experiences across the board.
In conclusion, the car rental industry is heavily influenced by major companies like Hertz, Enterprise Holdings, and Avis Budget Group. Their dominance in the market, driven by consolidation efforts, has led to a variety of brands catering to different customer segments. Whether you choose a larger company like Hertz or opt for a smaller rental company, customer satisfaction remains a key driver of success in this industry.
FAQ
What companies does Hertz own?
Hertz owns several brands including Hertz, Dollar Rent A Car, Firefly Car Rental, and Thrifty Car Rental.
What is the history of Hertz and its ownership changes?
Hertz was originally founded in 1918 by Walter L. Jacobs as Rent-a-Car Inc. John D. Hertz purchased the company in 1923 and renamed it Hertz Drive-Ur-Self System. The company went through several ownership changes, including being owned by General Motors and later sold to UAL Corporation in 1985. Hertz was later purchased by Park Ridge Corporation, a subsidiary of Ford Motor Company, in 1987. In 2005, Hertz was acquired by a consortium consisting of Clayton, Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global Private Equity.
How does Hertz compete in the car rental industry?
Hertz is one of the three major car rental companies in the United States, alongside Enterprise Holdings and Avis Budget Group. These three companies dominate the market, accounting for 95% of the domestic car rental industry. Consolidation in the car rental industry has led to these companies having brands in each pricing tier, offering options for different customer segments. Larger companies like Hertz benefit from cost efficiencies in acquiring and holding automobiles, while smaller companies may offer lower prices. Customer satisfaction with both large and small rental car brands is comparable, according to the J.D. Power 2014 North American Rental Car Satisfaction Study.