Avis Budget Group has signed an agreement to manage 600 self-driving Chrysler minivans for Alphabet’s Waymo autonomous-vehicle division. Under the arrangement, the rental company will provide storage, routine maintenance and fleet support for the Phoenix-based vehicles.
In a related development, Hertz Global Holdings reached a deal with Apple Inc. to lease six Lexus SUVs that Apple will convert into self-driving test vehicles. Both partnerships show how traditional rental firms are adapting to the emergence of autonomous mobility.
As autonomous vehicles move closer to mass production and deployment, rental companies are positioning themselves as key operators and service providers for large fleets. Their existing infrastructure—garages, maintenance teams, logistics and location networks—gives them a practical advantage in managing high-volume, complex vehicle operations.
“Some people thought that they would be victims, but they’re the only companies that can handle fleets on a large scale,” said Michael Millman, founder of Millman Research in Short Hills, New Jersey. He argues that autonomous cars and ride-sharing do not necessarily spell the end of the rental business; instead, they can create new revenue streams by turning fleet management into a profitable service.
That potential shift comes at an opportune time for rental companies, which have faced pressure from ride-hailing competitors such as Uber and Lyft and corresponding declines in market value. By expanding into long-term fleet management and autonomous vehicle services, rental operators may diversify their offerings and stabilize future earnings.
In practical terms, these partnerships could include vehicle storage, preventive maintenance, battery or charging services for electric autonomous models, software updates coordination, and logistics support for redeploying vehicles as demand changes. For cities and mobility providers, outsourcing these tasks to experienced fleet managers can reduce operational complexity and speed up deployment.
For the rental industry, success will depend on scaling capabilities while maintaining cost efficiency and service quality. Companies that can combine existing physical infrastructure with new fleet-management technology stand to benefit as clients increasingly demand turnkey solutions for autonomous and shared mobility.
Overall, the agreements between Waymo and Avis, and between Hertz and Apple, underscore a broader trend: rental firms are transforming from pure vehicle-lenders into integrated mobility operators, helping bridge the transition to autonomous transportation while creating new business models for the future.