Alphabet Inc. continues to invest a lot of efforts in its futuristic division for self-driving vehicles called Waymo. As of recently, the parent company inked a deal with Avis Budget Group Inc upon which the latter becomes the manager of its autonomous car fleet. This is a first of a kind agreement in such a young industry.
The Autonomous Car Fleet Will Gain Access to Avis’ Database of Clients
For the moment, the rental car organization will activate under Alphabet’s partnership within Phoenix only. The company is going to provide service and storage for Chrysler Pacifica minivans that are under Waymo brand. The agreement lasts for several years and stipulates that Waymo should cover expenses for Avis. On the other hand, the rental company will not enjoy exclusivity.
Through this partnership, Waymo is closer to catch up with its competition. What it lacked so far was a network of car owners, yet Avis is going to hand it exactly these precious resources. Once the car division gains access to them, it will be able to transform the clientele into an integrated part of an autonomous transport network. Avis is already in possession of one million customers to its on-demand rental service, Zipcar.
Avis Intends to Adapt to Future Industry Trends
However, Waymo is not confined to an exclusive contract. Therefore, it has the freedom to convert other brands to its self-driving systems in time. Avis might be just the beginning of a new type of business in this young industry that offers oversight over an autonomous car fleet.
Avis Chief Executive Officer Larry De Shon understood the fact that the future is near. Any vehicle business should already adapt to new and unavoidable trends.
“This just demonstrates that we can extend our business into fleet-management-as-a-service.”
The new partnership influenced shares to go to unexpected heights. This is the first time in five years Avis had its shares jump as much as 21% to $29.32 in New York. On top of that, the CEO plans to avoid expensive investments in real estate. Instead, its company is going to employ tents to protect such minivans from weather conditions. Additionally, Avis will have to tackle tire rotations, cleaning, oil changes, and hardware maintenance.
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