After two years with the car-sharing company Zipcar, Ohio State has decided to continue the program with another vendor, Connect By Hertz.
The university originally contracted Flexcar for the campus car-sharing program that allowed students to rent cars at an hourly rate. After Flexcar went through a merger, Zipcar inherited the company and the university’s contract.
“As the OSU Zipcar program evolved, enough changed that we decided to go out with a new bid,” said Doug Lape, executive assistant to the director of Transportation and Parking Services.
Connect by Hertz does not charge the university for the cars, unlike many companies that require some type of revenue guarantee. In return, OSU is helping to maintain the vehicles and the program itself. OSU is responsible for the marketing and advertising for the program, Lape said.
However, once the program becomes profitable, the university will receive 2 percent of the net revenue, which will go back into the program.
The revenue sharing is estimated to take approximately 15 to 24 months.
“We’d like the program to succeed because it provides the university community with alternative transportation options that will help move us forward in meeting the university’s overall sustainability commitments and provides alternatives for students who can’t bring vehicles to campus,” Lape said.
Five factors weighed in on OSU’s decision to choose Connect with Hertz, including flexibility to tailor the program and marketing to OSU, insurance, rates, support features and services and promotional periods and offers.
“The bid process for car-sharing is a bit different than most bids the university does because we’re not really buying anything,” Lape said.
Unlike other companies who bid for the contract, Connect by Hertz was willing to modify its marketing strategies and materials to the OSU community while also adhering to university branding policies.
The company’s insurance deductible of $250 was also lower than other vendors.
Rental rates for students vary with each vehicle, but all rates include 180 free miles per day and fuel, maintenance and campus parking. The Toyota Prius Hybrid is $8 an hour or $62 a day. The Toyota Camry and the Ford Escape are $9 an hour or $68 a day.
Henry Hu, a car-sharing member, was pleased with the features of the cars. “It was cool. It had a GPS so I could go anywhere and not get lost,” he said.
He said Connect by Hertz has its advantages and disadvantages. “Zipcars had a truck to help with moving and the Mini Cooper, which was fun to drive. Hertz has hybrids which are good for the environment.”
Eilis Fyda, director of market development at Hertz, said the cars have an onboard communication system with the company where drivers press a button, like OnStar, and reach a representative.
“They are wonderfully trained to do whatever they can because they have been inside the vehicle,” she said.
Other features include a card-reader entry system.
“When you make a reservation beforehand, the system will know it’s you and is expecting you. You hold your card over the reader and the door unlocks,” Fyda said.
The key is waiting inside, tethered to the console.
If someone enters the car without using the correct card, the system locks and the car won’t start. If the system fails to read the card, Hertz employees can remotely unlock the car.
If students sign up before June 30, Connect by Hertz will waive the $25 application fee as well as $50 annual membership fee. This month, members can receive their first hour free on hourly rates, and other promotions are being developed, Lape said.
“There are about 160 members and we are beating estimates,” Fyda said. “We are ahead of plan.”
To become a member, sign up at connectbyhertz.com.
Vicki Bouttavong can be reached at [email protected].