Avis Budget Collaborates With Waymo For Self-Driving Cars
Zacks Investment Research | Jun 27, 2017 08:45AM ET
Vehicle rental & leasing services provider, Avis Budget Group, Inc. (NASDAQ:CAR) , recently inked a definitive agreement with Waymo, an Alphabet Inc. (NASDAQ:GOOGL) owned firm. Per the deal, the company will offer support and maintenance services for Waymo’s self-driving fleet to make them readily available for riders round the clock. The multi-year agreement for an undisclosed amount boosted investor confidence. As a result, Avis Budget’s shares rallied as much as 21% during intra-day trading, closing at $27.67,up 14.2%.
The collaboration aims to support Waymo’s growing autonomous vehicle fleet and is a testament to the fact that driverless vehicles are getting closer to being a common feature on public roads. Per the agreement, Avis Budget will provide various automotive services such as interior and exterior cleaning, oil changes, tire rotations, and the checking, ordering and installation of automotive parts, as well as other necessary fleet support and maintenance services.
Waymo intends to change the mobility landscape with the addition of hundreds of Chrysler Pacifica minivans, manufactured by Fiat Chrysler Automobiles N.V. (NYSE:FCAU) , to build a 600-vehicle fleet. This self-driving car company is changing its operational gears by shifting from an in-house test program in Silicon Valley to a large-scale “early rider” program in Phoenix, AZ, that will eventually include hundreds of vehicles available for use by residents.
With an extensive network of rental facilities across the globe, Avis Budget is an ideal partner for Waymo to keep its fleet ready for ride through periodic maintenance when not in use. The strategic partnership will enable Avis Budget to leverage its current capabilities and assets to gain a first-hand in-depth knowhow of the technologies involved in self-driving cars that are likely to be the toast of the market in the near future. The partnership will be initially launched in Phoenix and is likely to gradually extend to other cities.
Avis Budget was the first in the vehicle rental industry to adapt to the technological era, wherein companies are exploring the online and mobile portals to enhance sales and margins. The company has also launched the mobile feature, “Avis Now,” which marks the transformation for its overall car-renting process. In addition, Avis Budget introduced a digital payment option with MasterPass. Avis Budget’s earlier achievements in this field include the launch of an Android application that enables customers to make, confirm or cancel bookings through voice commands. It also launched BudgetTruck.com, Budget Brand’s revamped website for truck rental customers, along with its mobile app and adoption of the Google Wallet app, all in order to enhance customer experience. With such investments in technological advancements, Avis Budget aims to pull up its sagging shares that have underperformed the Zacks categorized Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.