Vehicle rental giant,
Hertz Global Holdings Inc.
), has teamed up with warehouse retailer
Costco Wholesale Corp.
) to provide its 24/7 van rental service to Costco members in the
COSTCO WHOLE CP (COST): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
RENTRAK CORP (RENT): Free Stock Analysis
SOUFUN HLDG-ADR (SFUN): Free Stock Analysis
To read this article on Zacks.com click here.
Following the tie-up, Costco members will have the ease of
renting a Long Wheel Base Ford Transit Van from any of the 25
Costco warehouses in the U.K., to drive the goods purchased to
their homes without any delay. This self-drive service will be
available to Costco customers at a cost-effective price, with
hourly rentals starting as low as £13 or US$22 per hour.
Hertz, a pioneer in car rental services, has been keen on
expanding its global van rental offering through Hertz 24/7 for
more than five years now. While Costco's members can avail an
efficient self-delivery service through this partnership, Hertz
is responsible for making the right vehicle available from its
fleet and handling all customer transactions. The service
provides the convenience of booking online or through smart
Through this partnership, Costco expects to expand its membership
base, thus, improving its profits. Moreover, Costco is in an
advantageous position with lower expenses as Hertz takes the
responsibility of customer transactions.
We believe the deal is a win-win for both companies with the
potential for expansion of its scope from the 25 UK locations to
the 648 Costco outlets across the globe. We see enormous
expansion chances given Hertz's vast reach of nearly 10,400
Shares of Hertz have been rising since the announcement of this
partnership and have gained nearly 6.1% in two days.
Hertz currently has a Zacks Rank #3 (Hold), while Costco carries
a Zacks Rank #4 (Sell). Better-performing stocks in the business
services sector include
SouFun Holdings Ltd.
). Both these stocks have a Zacks Rank #1 (Strong Buy).