Brief:

• Rental car company Hertz partnered with SpotHero to provide customers with a mobile parking reservation solution to help car renters find, book and pay for off-street parking in more than 50 cities in North America, according to a press release.
• The feature is found directly in Hertz's mobile app and is powered by the SDK in SpotHero's HeroConnect parking mobility platform.
• The mobile partnership is a first in the car rental industry, per the release, and the two companies plan to work together on fleet management and connected car parking in the future.

Insight:

As ride-hailing companies like Uber and Lyft begin to bleed into the traditional rental car market, Hertz is among the companies that is redefining itself in the broader category of "transportation solution provider" by expanding to more than just providing vehicles. The gig economy that Uber helped to create also has led carmakers to imagine a future where cars are more likely to be shared, especially with younger generations beginning to show declining interest in learning to drive or owning a car, particularly in urban areas where rideshares and mobile car-hailing are abundant.

Even as ride-sharing and mobile ride-hailing become more popular, Hertz sees a money-making opportunity by expanding its offerings. The company provides older cars in its fleet to drivers working for Uber and Lyft, CEO Kathy Marinello told investors in November. It also opened new locations that cater specifically to rideshare drivers and partnered with auto-repair shop Pep Boys to inspect, certify and repair the vehicles. Short-term rentals that are vulnerable to competition from ride-sharing make up 5% to 7% of Hertz's rental volume.

SpotHero's partnership with Hertz follows a collaboration with travel management company Direct Travel. The travel agency earlier in February announced a partnership with SpotHero for Business to help corporate travelers find and book parking. SpotHero for Business lets travelers use a mobile device to find and reserve parking near to hotels, airports, downtown offices and client sites, according to a separate SpotHero press release.