Electric Vehicle Rentals Facing Uncertainty Following Hertz’s Return to Gasoline Cars

Hertz’s Decision to Sell a Third of Its EV Fleet Raises Concerns about Customer Education

Hertz’s announcement in 2021 to expand its electric vehicle (EV) rental fleet was seen as a significant step towards the transition to EVs. The company made headlines by purchasing 100,000 Teslas and enlisting Tom Brady for its advertising campaign. However, Hertz recently revealed its decision to scale back on this plan and sell a third of its EV fleet. The company cited high repair costs for EVs and lower consumer demand than expected as the primary reasons for this change.

One factor that has received less attention but is equally important is customer education. Hertz’s initial announcement highlighted widespread consumer interest in EVs based on data. Numerous surveys have shown that a significant portion of Americans are interested in switching to electric vehicles. However, these same surveys have also consistently indicated consumer concerns about charging infrastructure and other related issues. Electric vehicles are still a relatively new technology, and most renters are unfamiliar with how to operate them. Therefore, Hertz faced the challenge of not only generating interest in EVs but also educating customers about the intricacies of this technology.

Hertz CEO Stephen Scherr acknowledged this issue, stating, “There are millions of consumers around the world who are knowledgeable and experienced in EVs, and they ride them well… There are those that experiment, and their knowledge of how to drive this car may be part of the issue.” This highlights the need for effective customer education initiatives.

Hertz has made efforts to overcome this barrier by providing robust digital and educational content. The company has also deployed EV ambassadors to educate customers about EV operation. However, feedback about these programs has been mixed. While some renters have reported positive experiences with knowledgeable associates who explained everything, others, including the author of this article, have felt left in the dark. Personal experiences have revealed instances where customers were assigned electric vehicles without prior notification or adequate guidance. While Hertz did send resources about EV rentals via email, it often reached customers after they had already started their journey.

Upon reviewing the materials, it is evident that they offer valuable assistance. Short videos explain how to operate specific EV models, and a custom-built website helps users plan their journeys by locating charging stations. However, the lack of proactive communication from Hertz resulted in missed opportunities to engage customers effectively.

Hertz has not shared specific data about the success or challenges of its customer education program due to a quiet period ahead of its earnings announcement. Nonetheless, the company has emphasized the importance of customer education in its strategy to become an EV leader. The CEO mentioned that Hertz’s readiness and investments in educational tools on EV functionality aimed to reduce the frequency and cost of damage to their EV fleet.

The significance of customer education in Hertz’s EV initiative cannot be understated. The decision to scale back on the EV fleet has created another obstacle in achieving the goal of introducing and encouraging EV adoption among consumers.

This situation serves as a lesson for any company undergoing changes in response to the energy transition. It highlights the importance of providing adequate customer education and support. While this may seem obvious, it is a fundamental aspect that can sometimes be overlooked amidst concerns about pricing and other operational considerations. Hertz’s experience demonstrates that customer education is a challenging task that requires careful attention and execution.