Hertz Wins New Zealand Govt. Contract - Analyst Blog

Behemoth car rental brand, Hertz Global Holdings Inc. HTZ, has won a 3-year All-of-Government Rental Vehicles contract from the New Zealand government. Under the contract, Hertz will provide car rental solutions to various government agencies in New Zealand.

The contract was awarded through the nation's first All-of-Government (AoG) competitive tender for car hire services. Through this contract, agencies of the New Zealand government will have access to the various products and services offered by Hertz as well as its vehicle fleet.

The contract will enable the New Zealand government to hire cost-efficient, compact, intermediate and full-size vehicles from the Hertz fleet that includes a wide range of 4WDs, minivans and the Prestige Collection. Some of the innovative products and services offered by Hertz include Hertz Gold Plus Rewards, the specially designed NeverLost satellite navigation system in a range of languages, Mobile Wi-Fi and Premium Roadside Assistance.

Apart from positioning Hertz as a leading rental services brand in the country, this contract testifies the company's extensive experience in serving the public sector in New Zealand and the world over.

Government agencies generally resort to collaborative contracts, such as the AoG and Common Capability contracts with suppliers to establish a single supply agreement between the government and the chosen supplier. These contracts enable the agencies and governments to save on costs, enhance productivity gains for both the agencies and the suppliers and improve competition.

In early April, Hertz Equipment Rental Corporation, a unit of Hertz Global Holdings, announced the extension of its ongoing 5-year collaboration with the U.S. Communities Government Purchasing Alliance with the signing of a new 3-year contract.

Under this contract, Hertz will provide the enrolled users access to equipment rental products and solutions, including innovative programs and services. This contract takes Hertz Equipment Rental's experience of over 30 years of working with government agencies a step ahead, thus enabling the company to provide low-cost solutions to meet regular and specific equipment rental needs to more than 55,000 enrolled U.S. Communities participating agencies.

Hertz currently holds a Zacks Rank #4 (Sell). Better-performing stocks in the business services industry include Odyssey Marine Exploration Inc. OMEX, Rentrak Corporation RENT and ExamWorks Group Inc. EXAM. While Odyssey Marine and Rentrak have a Zacks Rank #1 (Strong Buy), ExamWorks Group carries a Zacks Rank #2 (Buy).