Avis Budget Group Inc. (CAR) Stock Soars on Waymo Deal

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Avis Budget Group Inc. (NASDAQ:CAR) stock was up on Monday following news of a deal with Alphabet Inc’s (NASDAQ:GOOG,GOOGL) Waymo.

Avis Budget Group Inc. (CAR) Stock Soars on Waymo Deal

Avis Budget Group Inc.’s agreement with Waymo will have to servicing and maintaining the latter’s fleet of self-driving vehicles. If will be upgrading select facilities around the around the world to prepare them to support the fleet.

The multi-year agreement between the two companies will have Avis Budget Group Inc. handling the care of the self-driving vehicles. This includes cleaning the interior and exteriors, oil changes and tire rotations. It will also handle checking, ordering and installing new parts for vehicles in the fleet.

Waymo is hoping that the agreement with Avis Budget Group Inc. will allow its fleet of self-driving vehicles to remain ready for riders at any time. The deal makes sense as CAR is already capable of taking care of vehicles that customers are able to rent.

Avis Budget Group Inc. handling the care of Waymo’s fleet comes after the latter announced plans for this fleet. The company adding hundreds of Fiat Chrysler Automobiles NV’s (NYSE:FCAU) Pacifica minivans to its fleet. This will have the fleet’s total size reaching 600 vehicles.

“”With members of the public using our growing fleet of self-driving cars, our vehicles need standard maintenance and cleaning so they’re ready for our riders at any time of the day or night,” said John Krafcik, Waymo’s CEO, said in a statement. “Avis Budget Group is an ideal partner to provide fleet support and maintenance.”

CAR stock was up 10% as of Monday afternoon, but is down 26% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/avis-budget-group-inc-waymo-alphabet-inc-self-driving-cars-car-goog-googl/.

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