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It looks like rental-car chain giant Hertz is expanding its business in New York to include the market currently served by Zipcar, which caters to New York residents who want regular access to a car for just a few hours or so a month. Hertz issued a press release today publicizing its new "Hertz Hourly Rental" program that allows customers to stop by three of the company's Manhattan locations and rent a car for a base price of $12 an hour. Reservations by phone are accepted at 800-HERTZ-HR, but not available over the Hertz website.
Zipcar's pricing structure is a little different, with a one-time application fee of $25 and either annual or monthly charges. The extra value plan costs $50 a month and drivers can get rates of $8.65 an hour and $58.65 a day. The occasional driving plan involves a $50 annual fee and users can drive from $10 an hour and $69 a day. Gas, parking and insurance are included in both Zipcar options.
It looks like the better option price-wise would depend on customers' rental habits. We'll hazard a guess and say that consumers will wind up going with the company that provides better service, like making sure cars are available when needed.
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I signed up for a zipcar membership 2 summers ago, and i not once got to use a car. whenever i wanted one- to go on a trip, to go to home depot, anything- there was never one available, no matter how far in advance i booked. i once found a car in june that was available for a weekend in august, but it was in westchester and i'm in manhattan. Ultimately they refunded everything but my initiation fee, which was like $25. I also calculated that it's cheaper to rent from a place like CC rentals on 10th ave if you're going away for a weekend-- even if you already have a zipcar membership. Maybe Hertz will be better at having cars available.
@bryan:
wow, that's pretty bad luck. i've been with them for about 3-4 years and have almost always been able to get a car. last summer was the near breaking point for me, when several times i went to get a car reserved, and it wasn't there. they were pretty clueless about customer service, but other than that it has actually been incredibly convenient.
Or do what I do and mooch rides. And occasionally borrow a car from trust fund friends that can afford to garage a car in Manahttan.
I've never had a problem using ZipCar, but I would say to Bryan that it's better for short, hourly rentals rather than weekend-long trips.
Will Hertz offer free gas, the way ZipCar does? It's hourly rates will be comparable to ZipCar, but not having to pay for gas easily saves $15 to $20 on each rental.
Also, if you're driving a Zipcar, don't get into any accidents -- you're driving uninsured, despite what company is claiming. Just google "zipcar insurance" to see what disgruntled members have to say.
Having some competition would be good for everyone. It's just too bad nothing is available in Brooklyn.
I've generally been a happy Zipcar customer, but their customer service is awful. One of their cars ate my CDs over a month ago, and I still haven't gotten my CDs back yet even though the car is out of the shop and back in rotation. No one from Zipcar will call me back or give me an answer.
We're number 2 so we try harder.
Excuuuuuuuuuuuse me, but has anyone noted that Hertz charges penalty rates to New Yorkers who rent locally? In my recent research for weekend transport, I've found Hertz typically doubled its competitors. (Employees of large corparations are, of course, exempt from charges faced by the hoi-polloi.)
It's all well and good that they're taking on ZipCar, whose vehicles have become increasingly prevelant in recent weeks. But this is hardly a "green path" to clean air.
Harry, what Hertz penalty rates? Renting a car on weekends here is always expensive. NYC is the only place in the country where weekend rentals are more expensive than during the week, since most business travelers (the typical weekday car renter) don't rent a car, and NYCers don't own cars.
I've found Hertz to be no more than their competition in NYC (National, Avis), and often cheaper. You don't need to be a large corporation customer to get discounts, btw - any of the airline mileage clubs have a deal, as does AAA (I find that AAA's car rental discounts more than justify the annual membership fee, even if I don't own a car).
Never found ZipCar to be competitive for full-day rentals, really, particularly for weekends, given the high mileage charges. Hourlies, yes, but not full-day. Never had much of a problem getting a ZipCar for a few hours, though...