Pershing Square CEO Bill Ackman Suggests Hertz-Uber Partnership on Autonomous Vehicles

Core Viewpoint - Pershing Square CEO Bill Ackman suggests a partnership between Hertz and Uber to deploy a fleet of autonomous vehicles, leveraging Hertz's extensive vehicle fleet and Uber's operational capabilities [1][2]. Group 1: Partnership Potential - Ackman describes the partnership as a "fun thought experiment" that could combine Hertz's fleet of 500,000 vehicles and global presence with Uber's expertise in fleet utilization and profitability [2]. - Uber CEO Dara Khosrowshahi expresses enthusiasm for exploring the expansion of their relationship with Hertz [3]. Group 2: Company Positioning - Hertz is seen as "uniquely well-positioned" in the current tariff environment due to its ownership of over 500,000 vehicles, which may benefit from rising used car prices [4]. - A 10% increase in used car prices could result in a $1.2 billion gain on Hertz's auto assets, approximately half of the company's current market capitalization [5]. Group 3: Management and Strategy - Hertz's management team is reportedly making improvements to the company, and the current CEO Gil West encourages employees to feel energized by Ackman's comments [3][4]. - The previous CEO of Hertz resigned in March 2024 amid reports of job cuts and financial losses related to the electric vehicle fleet [5]. - Hertz has not only sold off a significant portion of its electric vehicle fleet but has also halted plans to acquire additional electric vehicles [6].