Advertising Strategies and Lessons


Hertz Launches A Pilot Car Subscription Service

June 27, 2019 Sarah Cavill

Hertz My Car Subscription Service

Hertz, one of the leading rental car companies in the country, entered the car subscription business with a limited pilot program in Atlanta and Austin called Hertz My Car. The car subscription plan is similar to others that have been launched by startups and car manufacturers, with tiered membership and bundled services that may make the price tag worthwhile.

The Benefits Of Hertz My Car Present A Turn-Key Solution For Subscribers

As it stands now – and it will likely undergo further refinement once the pilot programs have had a chance to mature – there are two Hertz My Car tiers available: The Tier 1 enrollment ($999 per month, plus tax), which offers access to a limited, but still varied, group of vehicles from small SUVs to full-size sedans, and the Tier 2 enrollment ($1,399 per month, plus tax), which includes all the Tier 1 cars plus full size SUVs and several luxury vehicles.

Both Hertz My Car tiers require a $250 initial enrollment fee and include two car exchanges per month, insurance and maintenance once enrolled.

The Gold Plus Rewards Program Is Incorporated Into Hertz My Car Membership For Added Benefits

Hertz Gold Plus Rewards

In order to join Hertz My Car, users must be Hertz Gold Plus Rewards members. Once enrolled in Hertz My Car, users earn Gold Plus Rewards points every month of their My Car memberships. By combining two initiatives, Hertz creates loyalty even if a consumer chooses not to stay with the Hertz My Car subscription service. Having accrued points through the active months of the Hertz My Car subscription, prior subscribers may be more likely to stay loyal to the Hertz brand for future car rentals. One of the difficulties of car subscription services has been activating subscriptions in a way that is financially smart for businesses. For Hertz, by tying the membership to an existing benefit, the company may be securing future revenue.

Attitudes About Car Ownership Are Changing As Options Increase

Despite disruptions in the car-buying space, Americans are still buying cars, but attitudes about ownership are shifting, particularly among younger drivers. Arity, a transportation data and analytics company found, “Millennials might be buying cars but sharing them more often, or they may have cars they use on weekends only and therefore invest less in it because they’re going to use ride-share during the week. The place the vehicle is in the mindset of younger consumers is shifting because they are being offered more opportunities and more options.” Car subscription services are finding market share among these new ways of using transportation. To grow that share the subscription brands need to have the willingness to leverage existing business initiatives and iterate as consumer needs evolve.

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About the Author

Sarah Cavill

With more than 20 years of writing, editing and reporting experience, Sarah Cavill brings to Digital Media Solutions (DMS) a fine-tuned and diverse set of skills. Her work has been featured in notable publications including The Daily Muse, CBS Local, Techlicious and Glamour magazine. Sarah has a passion for current events and the deep-dive research that goes into the content development and brand identity of DMS Insights. In her role as Associate Content Manager, Sarah contributes to the pitching, researching and writing of multiple stories published each week surrounding digital and performance marketing innovations in pop culture, news, social media, branding and advertising.

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