Hertz (HTZ) stock closed significantly higher on Thursday after the car rental specialist announced an expanded deal with San Francisco-headquartered Uber Technologies (UBER).
This multi-year agreement will see HTZ’s newly launched subsidiary, Oro Mobility, manage UBER’s upcoming fleet of autonomous Lucid-branded robotaxis.
Plus, it expands a professional driver-led service model across major U.S. hubs as well. Despite the rally on April 30, Hertz shares remain down nearly 20% versus their year-to-date high.
Significance of Uber Deal for Hertz Stock
HTZ shares ripped higher because an expanded agreement with UBER marks a structural shift in the company’s identity, from a cyclical car-rental operator to a critical infrastructure provider for next-gen transportation.
By integrating Oro Mobility directly into Uber’s platform, Hertz Global is positioning itself as the operational backbone for autonomous vehicle (AV) fleets.
Under the agreement, Oro will manage high-touch operational needs of UBER’s robotaxis in the Bay Area, including specialized maintenance, depot staffing, and EV charging.
This will enable Hertz to capture high-margin, recurring service revenue while reducing exposure to volatile consumer rental demand, effectively tethering its growth to the fast-growing rideshare and AV sectors.
Why Else Are HTZ Shares Attractive?
With the launch of Oro Mobility, HTZ is also shifting toward a contract-based model that deploys professional drivers and premium vehicles into Uber’s network.
This will create a more predictable, recurring revenue stream — with higher vehicle utilization rates than standard leisure rentals.
The model is already proving successful, having scaled from an Atlanta pilot to Los Angeles and San Francisco, with a launch in New Jersey also planned for this spring.
Note that Hertz stock currently sits firmly above its key moving averages (MAs). Plus, even after today’s rally, its relative strength index (RSI) sits in the mid-50s only, signaling significant further room for upside.
Wall Street Remains Unimpressed
According to the latest Cox Automotive data, the Manheim Used Vehicle Value Index came in up 6.2% year-on-year for March, a major catalyst for Hertz, given it struggled with steep vehicle price declines in 2025.
Higher resale values tend to lower the firm’s Depreciation per Unit (DPU), padding its bottom line. Still, Wall Street recommends staying on the sidelines in HTZ stock.
The consensus rating on Hertz is currently “Moderate Sell," with the mean price target of about $4.43 indicating potential for a more than 5% drawdown from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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