Avis and Alphabet will team up on self-driving cars — and Avis shares are soaring

Key Points
  • Avis will service and store Waymo's fleet of Chrysler self-driving vans.
  • Waymo and Avis rival Uber are fighting in court over self-driving car technology.
A Waymo self-driving car.
Source: FCA

Alphabet and Avis Budget will work together on self-driving cars, the companies announced on Monday.

Alphabet's self-driving car company, Waymo, will rely on Avis to service and store its fleet of Chrysler self-driving vans, the companies said in a statement. Most of the 600 vehicles will be deployed, in part to support a pilot in Phoenix, Arizona.

Shares of Avis bounced more than 14 percent.

Avis will provide services like secure parking, cleaning, oil changes and tire rotations at its locations as part of the agreement.

The tie-up comes as Waymo and Uber fight in court over self-driving car technology. Uber's ride-hailing service is also a rival of Avis, especially among business travelers, studies show.

— With reporting by CNBC's Deirdre Bosa.