Avis Gets Waymo Driverless Car Deal -- WSJ
June 27 2017 - 3:02AM
Dow Jones News
By Jack Nicas
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the US print
edition of The Wall Street Journal (June 27, 2017).
Google parent Alphabet Inc. is hiring rental-car company Avis
Budget Group Inc. to store and service its self-driving cars in a
deal that shows Alphabet's vision for a network of driverless taxis
is getting closer to reality.
Alphabet's driverless-car unit Waymo is ramping up a program it
launched in April in Phoenix to eventually give hundreds of
selected residents there free rides in its self-driving cars.
Under the program, Waymo needs a depot to service and dispatch
its vehicles. The company said it chose Avis for its experience in
quickly fixing and cleaning rental cars and for its presence across
the U.S. and abroad, which can help Waymo expand its program to
other cities.
Avis, which also owns the rental-car service Zipcar, said that
under the multiyear agreement, it is modifying some rental-car
locations to park Waymo's vehicles and service them, including oil
changes, tire rotations and cleaning.
The companies didn't disclose financial terms of the deal or
specify its length. The deal isn't exclusive, so Waymo can still
establish partnerships with other fleet-management firms.
Avis shares rose 14% Monday, as the deal gives the company a
lead on other auto companies hoping to enter the business of
managing driverless-car fleets, a service that could include
everything from arranging for financing and insurance to providing
maintenance for fleet operators.
Shares of rental-car rival Hertz Global Holdings Inc. rose
following the news of the Avis-Waymo deal, and got a boost from a
report that one of its subsidiaries leased cars to Apple Inc. for
autonomous-vehicle testing.
The Hertz arrangement differs from Avis's in that it is a
lessor-lessee deal, with Apple leasing at least three Lexus SUVs
for testing from Hertz subsidiary Donlen Corp., a fleet-management
firm. Apple disclosed the leasing arrangement in April when it
filed for autonomous-driving permits and registered the vehicles
with the state of California. Shares of Hertz were up 13.5% in 4
p.m. New York trading.
Ford Motor Co. said last fall that it is looking to manage
driverless-car fleets. Fiat Chrysler has recently suspended
production of its Pacific minivans ahead of a planned recall
because of technical glitches. It is unclear how that suspension
will affect delivery of the additional 500 vans ordered by
Waymo.
Waymo has 100 Chrysler Pacifica self-driving minivans and has
ordered another 500 of the vans from Fiat Chrysler Automobiles NV,
which Waymo equips with computers and sensors to make them
self-driving. Waymo's cars, which also include Lexus SUVs, have
driven more than 3 million miles in testing across California,
Washington, Texas and Arizona.
--Christina Rogers and Tripp Mickle contributed to this
article.
Write to Jack Nicas at jack.nicas@wsj.com
(END) Dow Jones Newswires
June 27, 2017 02:47 ET (06:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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