Investors may not be able to directly cash in on Uber's success, but can instead look at car rental companies it will be disrupting—Hertz and Avis.» Read More
CHICAGO, July 7- As North Americans hit the highways, airports and rails for vacations this summer, it's not hard to believe that some of the most robust stocks are in the transportation industry- particularly in an improving economy.
LONDON, June 18- Hertz, the second biggest U.S. car rental firm, is looking to broaden its business and could allow its cars to be rented via Uber and its controversial smartphone app, Group President Michel Taride told Reuters on Wednesday.
Hertz, along with Avis Budget Group Inc and privately held Enterprise Rent-A-Car, the market leader, together control about 90 percent of the U.S. car rental market. Friday's trading erased all of the gains so far this year for shares of Hertz, whose shareholders include Larry Robbins' Glenview Capital Management LLC and Daniel Loeb's Third Point Capital.
Hertz, which replaced its chief financial officer in December, was scheduled to report results on May 7, but delayed the announcement saying more work was required. Third Point had a stake of about 1.3 percent in Hertz as of March 31, while Glenview had about 3 percent.
General Motors has recalled more than 13 million cars so far this year, which means fewer cars available on the rental lots for travelers.
Year to date shares of Avis have rallied about 35%, yet Jim Cramer thinks the stock remains relatively cheap.
May 7- Car rental company Avis Budget Group raised its full-year revenue and profit forecast, citing higher car rental volumes and rates in North America, and reported a higher-than-expected quarterly profit.
May 7- Car rental company Avis Budget Group reported a profit in the first quarter, compared with a loss a year earlier, helped by higher car rental volumes and rates in North America. Avis posted a net income of $4 million, or 3 cents per share, in the first quarter ended March 31, compared with a loss of $46 million, or 43 cents per share, a year earlier.
In the event that GM runs out of vehicles to loan owners of its recalled vehicles, the automaker has lined up rental firms, according to a report.
Hertz, the No. 2 U.S. car rental company behind privately owned Enterprise Rent-A-Car, has been under pressure from investors to shed the business and focus on car rentals. Hertz's remaining businesses would include the Hertz, Dollar, Thrifty and Firefly car rental brands and the Donlen fleet leasing and management business.
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Despite its higher prices, National Car Rental tops this year's Rental Car Satisfaction survey by J.D. Power, in part due to its easy pick-up process.
A study predicts that the number of subscribers to such services will grow from 2.3 million this year to more than 12 million in 2020.
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