Are Electric Vehicles Being Abandoned by Rental Companies?

A glimpse into the future of electrification as electric vehicle (EV) fleets face a downturn in the rental market.

  • Rental giant Hertz sells off a third of its electric vehicle fleet, highlighting the challenges of EV adoption in the rental sector.
  • Despite over 61,789 charging networks in the US, EV drivers encounter long queues and a lack of familiarity with the vehicles.
  • Bluedot introduces solutions like a recharge payment card and a rewards program to ease the transition to electric vehicles.
  • The complexity of the charging infrastructure and the scarcity of charging stations contribute to the reluctance towards EVs.

The declining trend in electric vehicle rentals

Recent actions by rental companies, notably Hertz's sale of 20,000 electric models—about a third of its EV fleet—have sparked debate over the state of electric vehicle adoption in the rental market. This move by Hertz reflects deeper underlying issues with the adoption of electric mobility within the rental industry, challenging the previously optimistic outlook for EVs.

Understanding electric vehicles

One of the main hurdles to electric vehicle adoption in the rental sector is the general unfamiliarity with EVs among drivers. According to Hertz, this lack of knowledge has led to a higher incidence of accidents with rented electric vehicles, which are often costlier and more time-consuming to repair due to the immature supply chain for spare parts and specialized repair networks.

Infrastructure challenges

The inadequacy of the charging infrastructure remains a significant barrier to electric mobility. Long waiting times at charging stations, despite the extensive network of over 61,789 charging stations across the US, exacerbate this issue. The multiplicity of operators, each requiring its own app for access and payment, further complicates the charging process for users.

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Bridging the gap

Ferhat Babacan, CEO of Bluedot, suggests that renting an electric vehicle could serve as an effective gateway to owning one. Bluedot's initiatives, including a payment card for charging and a rewards program, aim to smooth out the rental experience for both fleet managers and drivers. Babacan emphasizes the importance of making every aspect of using an EV—from driving to charging to managing expenses—as seamless as possible.

Bluedot's vision for a smoother EV rental experience

Bluedot is working towards transforming the rental fleet experience by simplifying payment processes for more than 70% of American charging stations through its mobile app. This approach seeks to mitigate some of the current challenges faced by fleet managers and provide a more user-friendly experience for customers, potentially paving the way for broader acceptance and adoption of electric vehicles in the rental market.

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