Pershing Sq. CEO Invoice Ackman — who disclosed in a Thursday (April 17) put up on X that the agency owns a 19.8% stake Hertz — mentioned within the put up that Hertz and Uber can be perfect companions to roll out a fleet of autonomous automobiles (AVs).
Calling the concept a “enjoyable thought experiment,” Ackman mentioned within the put up that such a partnership would convey collectively Hertz’s fleet of 500,000 automobiles, experience in automobile upkeep and 11,200 areas globally with Uber’s capacity to enhance the utilization and profitability of that fleet.
“Come to consider it, I’m going to name [Uber CEO Dara Khosrowshahi],” Ackman mentioned in a put up.
In a reply to the put up, Khosrowshahi mentioned: “Hertz has been an amazing accomplice of ours @Uber — excited to brainstorm on how we are able to develop on our relationship!”
The Wall Road Journal (WSJ), which reported on this trade Friday, mentioned Ackman and Pershing Sq. had been as soon as recognized for waging proxy fights and quick promoting however now deal with “holding a concentrated portfolio of well-known shares that it believes are undervalued.”
The WSJ additionally reported that Hertz CEO Gil West mentioned in a observe to workers that they need to really feel inspired and energized by Ackman’s put up.
Ackman mentioned in his put up on X that the automotive rental may be very worthwhile, that West and his administration crew are improving the corporate, and that Hertz is “uniquely well-positioned within the present tariff surroundings” as a result of it owns greater than 500,000 automobiles at a time when tariffs are prone to trigger a rise in used automotive costs.
“A ten% improve in used automotive costs would equate to a $1.2 billion acquire on its auto belongings — equal to roughly half of the corporate’s present market capitalization,” Ackman mentioned within the put up.
The earlier CEO of Hertz stepped down in March 2024, weeks after stories that the corporate was weighing job cuts after promoting off a couple of third of its electrical automobile fleet and saying it was shedding cash on the vehicles.
Along with promoting its electrical automobile fleet, the corporate additionally halted plans to buy tens of hundreds of electrical automobiles.