Hertz Rental Car Company History: Rise, Fall, And Comeback
- 01. Hertz rental car company history reveals surprising pivots
- 02. Founding era and early expansion
- 03. Acquisition by General Motors and airport pivot
- 04. Postwar boom and global reach
- 05. Technology and loyalty-program innovation
- 06. Modern diversification and brand portfolio
- 07. Bankruptcy, restructuring, and the Back-to-Basics strategy
- 08. Recent milestones and future direction
- 09. Key milestones in Hertz's corporate timeline
- 10. Illustrative overview of Hertz's location and revenue growth
- 11. How Hertz evolved its customer experience
- 12. Leadership vision and long-term brand identity
- 13. Ranking and positioning in the car-rental industry
- 14. Looking ahead: Hertz in the gig-era and mobility ecosystem
Hertz rental car company history reveals surprising pivots
Hertz Corporation, one of the world's largest car rental companies, traces its roots back to 1918 in Chicago, when a young entrepreneur named Walter Jacobs launched a small "Rent-a-Ford" operation using a dozen Model T sedans. Over the next century, Hertz transformed from a local taxi-linked fleet into a global mobility brand with airports, apps, and alternative transportation services, surviving wars, bankruptcies, and technological overhauls along the way.
Founding era and early expansion
In 1918, Walter Jacobs founded a Chicago-based car-rental firm with 12 Ford Model Ts, initially renting vehicles to customers who did not own cars. The business thrived by serving urban travelers and early business road trips, and by the mid-1920s it had grown to roughly $1 million in annual revenue.
In 1923, taxi magnate John D. Hertz purchased Jacobs' company and rebranded it as the Hertz Drive-Ur-Self Corporation, cementing a customer-centric philosophy that emphasized speed, reliability, and convenience. Under Hertz's leadership, the firm expanded its fleet, introduced standardized rates, and began establishing a coast-to-coast presence in the United States.
By 1925, Hertz Drive-Ur-Self had built a nationwide network that allowed customers to pick up or return vehicles in multiple cities, effectively pioneering the first nationwide car-rental system. That same year, the company rolled out the National Credential Card, an early form of identification card that served as a precursor to modern credit-based rental systems.
Acquisition by General Motors and airport pivot
In 1udad 1926, General Motors acquired Hertz Drive-Ur-Self and folded it into its fleet operations, providing the rental chain with access to large-scale manufacturing capacity and corporate financing. John Hertz himself joined GM's board of directors, helping the rental arm align vehicle supply with automotive production cycles.
This connection with Detroit's automakers proved critical during the 1930s, when Hertz opened its first airport rental location at Chicago's Midway Airport in 1932. The new airport facility introduced the "Fly-Drive" concept, allowing travelers to switch seamlessly from airplane to rental car, and helped normalize the idea of leisure and business road trips.
Postwar boom and global reach
After World War II, air travel growth accelerated, and Hertz capitalized on it by expanding its airport presence across the United States. By 1950, the company had opened its first European facility in France, marking the start of its status as a true global brand.
Within five years of that Paris launch, Hertz became the first rent-a-car company to operate more than 1,000 locations worldwide, spanning North America, Europe, and parts of Asia. This footprint allowed corporations, military personnel, and leisure travelers to access Hertz vehicles on a global scale, long before the internet era.
By the 1980s, Hertz had grown to roughly 5,000 locations across 100 countries, with tens of millions of annual reservations and tens of millions of customer interactions each year. The company's scale and brand recognition made it a preferred choice for many corporate travel programs.
Technology and loyalty-program innovation
From the 1960s onward, Hertz leaned heavily on emerging computer systems to speed up reservations, manage fleets, and reduce paperwork. In 1972, the company introduced the Hertz #1 Club, a computerized membership system that enabled faster check-ins and laid the groundwork for today's Hertz Gold Plus Rewards program.
By 1989, Hertz Gold members could bypass airport counters and head straight to their vehicles, a major convenience in the pre-smartphone era. Throughout the 1990s and 2000s, Hertz also rolled out on-board navigation systems such as NeverLost and launched its first public website, reinforcing its image as a tech-savvy operator.
Modern diversification and brand portfolio
In 2013, Hertz Global Holdings restructured its brand portfolio, formally integrating Hertz, Dollar, Thrifty, and Firefly into a single global organization. This multi-brand strategy allowed the company to target different customer segments-luxury, mid-range, budget, and on-off-airport rentals-under one corporate umbrella.
By the early 2020s, Hertz Corporation operated roughly 10,300 corporate, franchise, and licensee locations worldwide, serving North America, Europe, Asia, Latin America, Australia, Africa, and the Middle East. The combined fleet included cars, trucks, and specialty vehicles for diverse use cases such as tourism, construction, and logistics.
Bankruptcy, restructuring, and the Back-to-Basics strategy
In 2020, Hertz Global Holdings filed for Chapter 11 bankruptcy amid the travel collapse caused by the pandemic, massive fleet overhang, and heavy debt. The company subsequently restructured its balance sheet, sold non-core assets, and overhauled its fleet-management approach.
Between 2021 and 2025, Hertz implemented a "Back-to-Basics" operational strategy focused on buying, holding, and selling vehicles more efficiently. By Q3 2025, Hertz reported roughly $2.5 billion in quarterly revenue, record utilization above 84%, and a return to positive net income after two difficult years.
During this period, Hertz Car Sales-its direct-to-consumer retail outlet-grew significantly, with the share of fleet vehicles sold via retail channels rising over 570 basis points year-on-year. The company also reduced depreciation per unit per month to about $273, aligning with its long-term target of under $300.
Recent milestones and future direction
In 2022, Hertz launched a large-scale refresh of its corporate fleet, emphasizing newer model years, higher-quality interiors, and advanced safety features. By 2025, Hertz's North American Net Promoter Score had nearly doubled year-over-year, reflecting improvements in rental ease, vehicle quality, and digital experience.
Today, Hertz markets itself as the largest worldwide airport general-use car-rental brand, with a strong mobile-app ecosystem, airport kiosks, and expanded loyalty rewards. The company continues to experiment with subscription-style rentals, partnerships, and ancillary services to capture the evolving post-pandemic travel market.
Key milestones in Hertz's corporate timeline
- 1918 - Walter Jacobs launches a small car-rental business with 12 Ford Model Ts in Chicago.
- 1923 - John D. Hertz purchases Jacobs' company and renames it Hertz Drive-Ur-Self Corporation.
- 1926 - General Motors acquires Hertz Drive-Ur-Self, integrating it into its automotive ecosystem.
- 1932 - Hertz opens its first airport rental shop at Chicago's Midway Airport, launching the Fly-Drive concept.
- 1950 - Hertz opens its first European facility in France, beginning its global expansion.
- 1972 - Hertz introduces the Hertz #1 Club, the foundation of its modern loyalty program.
- 2006 - The company launches the Green Collection, emphasizing fuel-efficient and eco-friendly vehicles.
- 2013 - Hertz Global Holdings consolidates Hertz, Dollar, Thrifty, and Firefly into a multi-brand portfolio.
- 2020 - Hertz files for Chapter 11 bankruptcy, triggering a major restructuring and fleet overhaul.
- 2025 - Hertz reports $2.5 billion quarterly revenue, utilization above 84%, and a return to positive net income.
Illustrative overview of Hertz's location and revenue growth
The following table presents a stylized but realistic view of Hertz's global footprint and financial scale over several decades. All figures are approximations for illustrative purposes, based on documented growth trajectories rather than exact disclosures.
| Year | Approximate locations worldwide | Estimated annual revenue (USD) | Key strategic focus |
|---|---|---|---|
| 1925 | ≈ 100 U.S. locations | $1 million | Coast-to-coast network and Rail-Drive reservations. |
| 1955 | ≈ 1,000 locations | $100-150 million | First 1,000-location rent-a-car brand; airport expansion. |
| 1980 | ≈ 5,000 locations | $1.5-2 billion | Global airport presence; early computerized reservations. |
| 2008 | ≈ 8,100 locations | $7-8 billion | Multibrand experiments; digital booking and GPS navigation. |
| 2015 | ≈ 9,500 locations | $10-11 billion | Loyalty integration and mobile app development. |
| 2025 | ≈ 10,300 locations | $9-10 billion (annual, post-bankruptcy) | Back-to-Basics fleet strategy and record utilization. |
How Hertz evolved its customer experience
From the very beginning, Hertz prioritized customer convenience, introducing features such as advance reservations, coast-to-coast one-way rentals, and the National Credential Card. These innovations helped reduce friction at the rental counter and laid the groundwork for later tech-enabled services.
In the 2000s and 2010s, Hertz expanded its digital touchpoints, adding mobile apps, eReceipts, and Express Rent Kiosks. By 2025, the company reported that over 60% of its reservations were initiated or completed via mobile or web channels, including loyalty-based express check-out at airport counters.
Hertz's evolution shows that the car-rental industry has shifted from a simple vehicle-lease model to a digital-first mobility platform, blending fleet management, technology, and customer-experience design into a single operational system.
Leadership vision and long-term brand identity
John D. Hertz's original vision emphasized accessibility, reliability, and innovation, traits that continued to shape the company even after he left the active management team. Later leaders, including modern executives at Hertz Global Holdings, have framed the brand around the tagline "We're here to get you there," tying it to both physical journeys and digital convenience.
In recent years, Hertz has also emphasized inclusive marketing, targeting segments such as female business travelers and underserved leisure markets. These efforts reflect a broader strategic pivot from raw volume growth to differentiated customer experiences across its global network.
Ranking and positioning in the car-rental industry
While other global brands such as Enterprise Rent-A-Car and Avis Budget Group compete closely on size and market share, Hertz remains the largest worldwide airport-based general-use rental brand. Its multibrand structure with Dollar, Thrifty, and Firefly allows it to maintain price segmentation without diluting the core Hertz premium identity.
Industry analyses suggest that Hertz accounts for roughly 20-25% of global airport-based car-rental revenue, with the remainder split among Enterprise, Avis Budget, Europcar, and regional operators. This concentration underscores how pivotal Hertz's century-long evolution has been for the travel and hospitality ecosystem.
Looking ahead: Hertz in the gig-era and mobility ecosystem
Going forward, Hertz is positioning itself not only as a traditional car-rental provider but also as a participant in the broader mobility ecosystem, experimenting with subscriptions, short-term leases, and technology-enabled chauffeur services. The company's recent investments in mobile apps, data analytics, and vehicle-life
Everything you need to know about Hertz Rental Car Company History Rise Fall And Comeback
How did Hertz get its name?
John D. Hertz chose his own surname to brand the company after he acquired Walter Jacobs' rental business in 1923. The name "Hertz" was already familiar in the United States because of his earlier success with the Yellow Cab Company, which helped make the new car-rental brand instantly recognizable.
When did Hertz start operating outside the U.S.?
Hertz opened its first European location in France in 1950, marking the start of its international expansion. Within five years, it had grown to more than 1,000 locations worldwide, making it the first major global car-rental chain.
Was Hertz always an independent company?
No. Hertz Drive-Ur-Self was acquired by General Motors in 1926, at which point it became part of GM's broader fleet and finance operations. Hertz later regained independence and eventually became a publicly traded holding company under Hertz Global Holdings.
What role did technology play in Hertz's growth?
From the 1970s onward, Hertz invested heavily in computerized reservation systems, loyalty databases, and airport kiosks. The Hertz #1 Club (later Gold Plus Rewards), NeverLost navigation, and early web presence allowed the company to offer faster check-ins, better vehicle tracking, and more consistent service across thousands of locations.
How has Hertz adapted to electric and hybrid vehicles?
In 2006, Hertz launched its "Green Collection," a line of fuel-efficient and environmentally friendly vehicles. By 2007 the company had added the Toyota Prius, the world's first mass-produced hybrid, to this fleet and began rolling out more electric and hybrid options to meet airport and regulation-driven sustainability targets.
What is Hertz's biggest competitive advantage?
Hertz's largest competitive advantage is its combination of airport-centric scale, technology-driven loyalty programs, and a diversified brand portfolio that spans premium, mid-tier, and budget segments worldwide. This configuration allows it to capture both frequent business travelers and cost-sensitive vacationers on a single platform.
Is Hertz still owned by General Motors?
General Motors sold its stake in Hertz in the 1950s, and Hertz later became an independent entity before being acquired by private-equity sponsors and eventually re-listed as Hertz Global Holdings on the New York Stock Exchange. The company is no longer controlled by automakers.
How many countries does Hertz operate in today?
Hertz Corporation operates in more than 150 countries through corporate, franchise, and licensee locations, with a particularly strong presence at major airports and urban centers. The exact number of countries fluctuates slightly with local partnerships and regulatory changes, but the footprint has remained above 150 for most of the 2020s.