Tesla Customer Hertz Backs EV Car Rental Startup Ufodrive In $19M Funding Round

Car rental firm Hertz Global Holdings Inc HTZ is a leading investor in Europe’s online, all-electric car rental startup Ufodrive.

What Happened: Hertz and investment management company Certares are leading a $19 million Series A funding round in Ufodrive, the latter said in a statement on Tuesday.

Ufodrive offers self-service access to a fleet of electric vehicles through its app, as well as a software-as-a-service platform for fleet management. The service is currently available in the U.K., Ireland, France, Germany and the Netherlands, with plans for overseas expansion.

See Also: Hertz Suggests 'First Wave Of National Rollout' Of Tesla EVs On Track, Prepares To Expand To 'New Markets'

Why It Matters: Hertz had last year announced it would buy 100,000 Tesla Inc TSLA EVs by the end of 2022. The company had tapped Tampa Bay Buccaneers star Tom Brady to promote the deal.

Hertz’s announcement was seen as a bold move from a company that had only months ago emerged out of bankruptcy and indicated a shift towards electric vehicle adoption.

See Also: Hertz Says No Availability At LaGuardia But Actively Receiving Tesla Deliveries After Analyst Raises Doubts

The announcement at the time sent shares of both companies higher and Tesla stock joined the $1 trillion market capitalization club for the first time in the aftermath.

Hertz further announced a partnership with Uber Technologies Inc UBER to rent out 50,000 Teslas exclusively to the ride-sharing company's drivers by 2023.

Price Action: Hertz shares closed 3.2% lower at $19.7 a share on Tuesday.

Photo: Courtesy of Steven Damron on Flickr