Apple Working With Hertz on Autonomous Car Testing [Updated]

Apple's effort to test autonomous vehicle technology in California involves a collaboration with Hertz, the second largest U.S. car rental company, reports Bloomberg.

appleautonomousdrivingtestlexus
The disclosure of the relationship between Apple and Hertz came in documents recently released by the California Department of Motor Vehicles. The documents note Apple is leasing its small fleet of Lexus RX450h SUVs for autonomous driving tests from Hertz's fleet management group.

The iPhone maker is leasing Lexus RX450h sport-utility vehicles from Hertz’s Donlen fleet-management unit, according to documents released recently by the California Department of Motor Vehicles. When Apple received its license to test three autonomous vehicles from the state’s DMV in April, the documents listed Donlen as the lessor and Apple as the lessee.

Hertz's stock price is up nearly 15 percent on the news, as investors speculate about a larger partnership between the two companies as Apple's project moves forward.

The news comes as Alphabet's self-driving car unit Waymo has announced an agreement with Avis Budget to manage Waymo's fleet of Chrysler Pacifica minivans.

Update: Apple tells CNBC that there is no partnership with Hertz and that Apple is simply leasing six vehicles from Hertz for its project.

Related Roundup: Apple Car

Top Rated Comments

carlhancock Avatar
88 months ago
Well, I'll only buy it if it's not a Lexus.
I don't think Apple wants you to buy one of their self driving cars.

They are going to want you to use one of their self driving cars like people use Lyft/Uber.

I don't think they are creating their own car from scratch like Tesla. I think they are doing what Google is doing with Waymo and customizing existing cars via manufacturers they partner with in order to create fleets of self driving cars you can use on demand.
[doublepost=1498505079][/doublepost]
"Hertz's stock price is up nearly 15 percent on the news, as investors speculate about a larger partnership between the two companies as Apple's project moves forward. "

That's not a great speculation
Considering the news this morning from Bloomberg that Google's Waymo had partnered with Avis to do the exact same thing... it's actually great speculation.

Apple will need someone to keep their self-driving car fleet cleaned and Hertz has the network of rental car retail locations that can do exactly that just like Avis is going to be doing for Waymo.

After reading the Waymo news this morning about their partnership with Avis, it makes sense for Apple to partner with one of the other major rental car companies.

I repeat below what I said in another comment...

I don't think Apple is working on a self-driving car to sell direct to consumers like Tesla.

I think Apple is working on self-driving car technology that they can bolt on to existing car by manufactures they partner with to create a fleet of self-driving cars that you can summon on your mobile device like you do with Uber/Lyft.

Partnering with someone like Hertz makes perfect sense in this scenario. It's the same direction and partnership route Waymo is taking.
Score: 4 Votes (Like | Disagree)
DrumApple Avatar
88 months ago
Hertz, a company with the same great reputation and products as Apple... sarcasm. When I think of Hertz, I get an instant whiff of disgusting rental car odor
Score: 2 Votes (Like | Disagree)
sudo1996 Avatar
88 months ago
Well, I'll only buy it if it's not a Lexus.
Score: 1 Votes (Like | Disagree)
shk718 Avatar
88 months ago
If this works I bet Apple will buy Hertz. They need to own a fleet of very specific cars, those with their hardware/software in them. This is why buying something like UBER wouldn't work. UBER doesn't own cars. And they don't need to buy a car company (or build their own) because they aren't making money from selling cars. They're looking to become a modern version of the car rental agency, with steady streams of $ flowing in. I wouldn't be surprised if they do design a car (or lineup of cars) and have someone make it for them, with the "Apple" look and feel.
Score: 1 Votes (Like | Disagree)
Jakexb Avatar
88 months ago
"Hertz's stock price is up nearly 15 percent on the news, as investors speculate about a larger partnership between the two companies as Apple's project moves forward. "

That's not a great speculation
Score: 1 Votes (Like | Disagree)
carlhancock Avatar
88 months ago
What manuafactuer is going to partner with Apple? All these car companies are doing their own thing and have been for longer than Apple has. Google is not in the hardware business so no surprise they're not building their own vehicles. But Apple's magic is when hardware, software and services all come together. I can't see them being successful with their software and services bolted on to someone else's hardware. The other thing is Apple is all about the experience. Do they really want a customers experience to be via someone else's product? How did that work out with the ROKR or more recently the LG 5K stand alone monitor? Furthermore what auto company is going to want to give up its dashboard and in car experience to Apple? CarPlay is just projected
What manufacturer is going to want to partner with Apple? The manufacturers that want to lease and/or sell (most likely lease) A LOT of vehicles to Apple.

Apple isn't going to be partnering manufacturers to provide them with self-driving cars to put in their vehicles to sell consumers.

Apple is going to be retrofitting car manufactured by whichever manufacturers they choose to source them from, most likely via a fleet leasing program, retrofit them with the self-driving car technology they are development and then deploy them as a fleet of self-driving vehicles you can summon like you do a Uber or Lyft now.

This is exactly what Google is doing with Waymo and doesn't necessitate developing their own car from scratch like Tesla. It's why Google abandoned developing their own car earlier this year in favor of retrofitting existing minivans with their Waymo self-driving technology.

They don't want to sell you a self-driving car. They want you to summon a self-driving car to take you where you need to go. Then the self-driving car will go pick up someone else and take them to where they need to go.

Then a company like Hertz who will manage the fleet so that the cars return to a location to be cleaned, inspected, services, etc. Why someone like Hertz? Because they already have a network of rental car locations that do this exact same thing with rental cars.

Why would a manufacturer sell Apple cars so they can do this? Money. Why would a company like Hertz partner with Apple to manage their fleet? Money.

This is a much smarter play that would attract much quicker adoption than trying to sell consumers self-driving car that Apple would have to develop from scratch, service, maintain, etc. Look at the popularity of Uber and Lyft (also a Waymo partner). Which is why both Google's Waymo is going this route and it appears Apple is going in this direction too.
Score: 1 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
apple wallet drivers license feature

Apple Said iPhone Driver's Licenses Would Expand to These 8 U.S. States… Two Years Ago

Thursday March 14, 2024 7:33 am PDT by
In just four U.S. states, residents can add their driver's license or ID to the Apple Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports, businesses, and venues. Adoption of the feature has been slow since Apple first announced it in September 2021, with IDs in the Wallet app only available in Arizona,...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
OLED iPad Air

iPad Air Next on Apple's OLED Tablet Roadmap Following iPad Pro

Friday March 15, 2024 3:30 am PDT by
The iPad Air will be the next Apple tablet to adopt OLED display panel technology following its upcoming OLED iPad Pro models, according to an updated forecast from research firm Omdia (via The Elec). "In 2028, we expect the iPad Air to go OLED as well, with the iPad Air using single-stack and the iPad Pro using two-stack tandem OLEDs," said Omdia researcher Kang Min-soo, speaking on...
Walmart MacBook Air M1

Walmart Begins Selling MacBook Air With M1 Chip for $699 in U.S.

Friday March 15, 2024 6:57 am PDT by
Walmart today announced that it has started selling the MacBook Air with the M1 chip in the U.S., with pricing set at a very reasonable $699. The laptop can be ordered now on Walmart.com, and it will be available soon at select Walmart stores. This is the first time that customers can purchase a Mac that is sold directly by Walmart, the company said in a press release. Some other retailers...