Rental Cars

Battle for the Hourlies: Hertz Seeking ZipCar Customers

In late 2008, Hertz entered the hourly car rental market with a service called Connect by Hertz.  Recently Hertz re-branded the service as “Hertz on Demand,” eliminated membership fees, cut hourly rates, and expanded the types of vehicles available through the service.  All of these changes are aimed squarely at zipcar.  For example, zipcar charges a $60 annual fee to take advantage of their service.  Why rebrand and cut fees?