The Decline of Hertz...What Happened?

Поділитися
Вставка
  • Опубліковано 11 сер 2020
  • In May of 2020, the rental car company Hertz filed for bankruptcy. This video takes a look at their constantly changing history while trying to find reasons behind their recent troubles.
    To submit ideas and vote on future topics:
    companymanideas.com
    Patreon: / companyman
    Twitter: / mikecompany17
    A very special thanks to this wonderful group of Patrons:
    Brian McGowan, Brooks Sparling, Jesse Kunze, Austin Clarke, Brian Smith, Huperzia Selago, Ahmad, Victor Anne, Jesse Long, Jimmy1985, Robert T Kirton, milkshake, Brandon L, Sirpoptart, Jon, Logan Brown, Christian & Penny Gray, Emerald Computers - Jason Dragon, Dylan Kinnard, Brett Walton, Fortunate Calf, Dominique Dugas, Nicholas Murphy, Taylor LaBrier, Peter Wesselius, Tristan Williams, Meow Wolf, Amy Westacott, Sam Bennett, Vincent Frame, MyNameIsKir, Stewart Tritapoe, Sondre Grimsmo Sinnes, Chris Lion-Transler, Marshall Kurtz.
    Company Declines:
    Kmart: • The Decline of Kmart.....
    Blockbuster: • The Decline of Blockbu...
    RadioShack: • The Decline of RadioSh...
    Solo Cups: • The Decline of Solo......
    Toys "R" Us: • The Decline of Toys R ...
    hhgregg: • The Decline of hhgregg...
    Pan Am: • The Decline of Pan Am....
    ESPN: • The Decline of ESPN......
    Gibson: • The Decline of Gibson....
    iHeartMedia: • The Decline of iHeartM...
    Bon-Ton: • The Decline of Bon-Ton...
    Kodak: • The Decline of Kodak.....
    General Electric: • The Decline of General...
    Woolworth: • The Decline of Woolwor...
    Dell: • The Decline of Dell......
    Sears: • The Decline of Sears.....
    Payless: • The Decline of Payless...
    Hostess: • The Decline of Hostess...
    Redbox: • The Decline of Redbox....
    Nokia: • The Decline of Nokia.....
    JCPenney: • The Decline of JCPenne...
    Quiznos: • The Decline of Quiznos...
    GameStop: • The Decline of GameSto...
    NASCAR: • The Decline of NASCAR....
    Shopko: • The Decline of Shopko....
    MoviePass: • The Decline of MoviePa...
    Reebok: • The Decline of Reebok....
    The Gap: • The Decline of The Gap...
    Pier 1 Imports: • The Decline of Pier 1 ...
    Sbarro: • The Decline of Sbarro....
    AOL: • The Decline of AOL...W...
    Long John Silver's: • The Decline of Long Jo...
    Chuck E. Cheese's: • The Decline of Chuck E...
    GNC: • The Decline of GNC...W...
    ______________________________
    Website created by - fullertonmedia.com
    Intro Made By - / @jombo1

КОМЕНТАРІ • 1,3 тис.

  • @MrKanjidude
    @MrKanjidude 3 роки тому +423

    If there's anything this video series has taught me it is that many huge American companies are just houses of cards, built on debt and short-term thinking.

    • @briananderson7497
      @briananderson7497 3 роки тому +35

      Sounds a lot like our Federal Government.

    • @winniebae4alwayyz963
      @winniebae4alwayyz963 3 роки тому +7

      *Quite the stellar observation. Yup, you summed it up perfectly.*

    • @tongobong1
      @tongobong1 3 роки тому +8

      Yes but you can quickly see which one is or is becoming a house of cards by looking at its finances before you buy it or sell it. You should check it once per year if you hold it.

    • @hektaah
      @hektaah 2 роки тому +2

      Research Japanese business vs American business.

    • @DrGandW
      @DrGandW 2 роки тому +8

      I get so hype when he mentions a company not choosing to take on debt

  • @monstersociety3360
    @monstersociety3360 3 роки тому +464

    I rented a truck from Hertz a couple of years ago while I was on vacation. When it came time to return the vehicle, I saw a sign at their establishment that said "Please check your vehicle for valuables before returning them." (Or however they articulated it on that sign, I guess.)
    I asked the guy I was returning the truck to "What's the weirdest thing you've ever found that someone left in a rental car?" (Kind of fishing for a funny story, obviously.)
    Without missing a beat, the guy goes "Tons of people forget their babies in car seats around here."
    Not really the hilarious anecdote I was hoping for, but the good news is the guy assured me that absolutely everyone comes back for em eventually.

    • @zoozagt5
      @zoozagt5 3 роки тому +20

      😳

    • @elia.8993
      @elia.8993 3 роки тому +17

      😂😂😂

    • @KalodexD
      @KalodexD 3 роки тому +18

      that's scary yo

    • @TylerFurrison
      @TylerFurrison 3 роки тому +15

      Eventually... Just wait until someone waits 18 years

    • @Rogue849
      @Rogue849 3 роки тому +4

      Oh wow

  • @MatthewHoag77
    @MatthewHoag77 3 роки тому +573

    With a name like Hertz, declining business frequency is always a bad sign.

  • @TheOfficialFF_
    @TheOfficialFF_ 3 роки тому +447

    This man was selling used cars in 1904... that's crazy to think about

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +59

      Considering that back then a new car came in a box and you had to put it together yourself like an Ikea end table, maybe not such a crazy idea.

    • @TheOfficialFF_
      @TheOfficialFF_ 3 роки тому +28

      @@Raskolnikov70 that is true imagine getting a car in a box

    • @iskandertime747
      @iskandertime747 3 роки тому +29

      Right? There were only like, five used cars in the world! 🤣

    • @Helladamnleet
      @Helladamnleet 3 роки тому +5

      @scottbaino That 70's Show featured a 1969 Vista Cruiser in the year in the year 1976, and was already considered an old piece of crap. That's only 7 years.

    • @paulheap1982
      @paulheap1982 3 роки тому +1

      @@Raskolnikov70 considering I've never heard of that and can find no source...

  • @peterbarlow7781
    @peterbarlow7781 3 роки тому +413

    That’s private equity for you: do leveraged buyout then leverage the acquired company to buy more companies. Take company public, run off with the cash. Asset Strip the acquired company. Declare bankruptcy and walk away. Rinse and repeat. (Also cars are some of the worst assets to leverage against as hey presto they depreciate every single month)

    • @DeeDerry
      @DeeDerry 3 роки тому +20

      Exact breakdown! 💯

    • @GyroCannon
      @GyroCannon 3 роки тому +32

      To be fair, people who buy bad IPOs deserve to get ripped off. People who bought shares of Uber, Snapchat, or Dropbox on IPO day, despite all the publicly available financial statements saying that they're not profitable (nor will be profitable for the foreseeable future) are really dumb with their money.

    • @cameraman655
      @cameraman655 3 роки тому +1

      GyroCannon AGREED!

    • @bigstupidgrin
      @bigstupidgrin 3 роки тому +6

      Yeah quickly depreciating collateral sounds like a bad plan

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +29

      That's the moment I want for in every one of these videos. "Then they were sold to a private equity firm....." - WELL THERE'S YOUR MISTAKE RIGHT THERE!

  • @Kanga1974
    @Kanga1974 3 роки тому +194

    Hertz was "killed" by budget rental companies. Hertz was never cheap and people just switched to much cheaper competition. The same situation as with budget airlines. I am renting a car once a month and i used Hertz for many years but later i switched to other smaller companies where exactly the same car costs me 50% less ...

    • @sjokomelk
      @sjokomelk 3 роки тому +14

      I used to visit the US once or twice a year from Europe, and would always rent a car. Hertz or Avis was never an option. Just too expensive. So I went with the budget companies for a much cheaper deal.

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +7

      I only ever rented from Enterprise. Had a good experience with them while I was in the military (they gave out huge discounts) and stuck with them after that. But you always had to reserve a car in advance. Was Hertz better when it came to providing cars at airports on short notice? They must have been doing something to keep customers coming in if they were that much more expensive, and from other comments it doesn't sound like it was their customer service.

    • @busayar
      @busayar 3 роки тому +4

      True . Hertz never been my choice for rental .. budget mostly

    • @JBM425
      @JBM425 3 роки тому +5

      I usually went with National because of its balance between price and convenience (getting to choose any car in a category). One big advantage with Hertz if you were in their Gold Club was that they would have the vehicle ready to roll... just look on the board, find your name and space number, go to the car, and off you go. You'd pay more, but for some, that convenience is worth the extra cost.

    • @colincampbell767
      @colincampbell767 3 роки тому +14

      @@Raskolnikov70 "I only ever rented from Enterprise. Had a good experience with them while I was in the military . . ."
      Trivia note: The Company is named after the USS Enterprise (WWII version). The people who founded the company all served on that ship in WWII.

  • @FozzyBBear
    @FozzyBBear 3 роки тому +204

    It's the same old song. Private Equity bought the highly profitable business from Ford for $15 billion, putting up only $2 billion themselves and putting Hertz on the hook for the rest. 6 months later they cashed out $1 billion from Hertz, and six months after cashed out again with the IPO. At the IPO, Hertz had a 95% debt to asset ratio, and very little cash on hand, thanks to the corporate vultures who had picked it clean.
    At this point Hertz effectively became a bank, packaging collateralized debt to institutional investors, and hoping to make a minor profit off the resale value of the cars at the end of the loan. This insane level of leverage was a ticking time bomb around their necks. Their ebb and flow of their business was now wholly dependent on the timing of deal flows from investors, not the needs of their customers. Then Covid hit, and fleet resale values collapsed at the same time as their rental income disappeared.
    TL;DR The death blow was struck in 2005 when Hertz was forced into an unsustainable business model to service debt used to pay the vultures, it just took 15 years for the house of cards to collapse.

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +22

      Someone else in M&A wrote up a good comment on the same thing. That basically all of this debt-shuffling is an accounting game that allows the people doing it to make profits short-term. Venture (vulture) capitalists are pretty open about doing it, but tons of companies do this kind of stuff for years and keep getting away with it until something like Lehman Brothers or Covid comes along and ends the game.

    • @franklinbrooksstoppedcomme3267
      @franklinbrooksstoppedcomme3267 3 роки тому +10

      My goodness Fozzy, you have such a way with words.

    • @reubenshupe2273
      @reubenshupe2273 3 роки тому +3

      Waka waka

    • @WobblesandBean
      @WobblesandBean 3 роки тому +1

      That wasn't a very funny joke, Fozzy.

    • @stephen3164
      @stephen3164 3 роки тому

      Straight out of the Bain Capital playbook.

  • @TheTexas1994
    @TheTexas1994 3 роки тому +158

    Let's talk about what led to their bankruptcy
    OH NO
    They sold it to a private equity firm
    *OH NO*

  • @jpman2173
    @jpman2173 3 роки тому +38

    As a former Hertz location manager, I knew this was going to happen, just didn't expect it to happen so soon. One advice I can tell folks out there to please be aware of the charges. It is typically more expensive to rent at an airport location than off-site because you will have to pay airport taxes and other fees. Also, it is better to book a reservation directly from the company's site because if something goes wrong with your reservation the agents can fix it easily, rather than booking it through third party companies. I don't know how many times our customers had to call and wait for an agent because they were promised a certain class/car but the problem is they do not see what we have in our inventory. Oh, the nightmares! Nonetheless, our area manager didn't care much about his employees. For the short amount of time I have been there, I have seen customer reps being let go or resigning faster than I could change my own underwear.

    • @lmfd7373
      @lmfd7373 2 роки тому +1

      Airport location cost more but offer the convenience of longer hours, larger fleet of cars and Sunday drop offs have to pay for more options 🤷🏾‍♀️

  • @BugsyFoga
    @BugsyFoga 3 роки тому +131

    Always have time for a new company man .

  • @AngelaRichter65
    @AngelaRichter65 3 роки тому +18

    We rented exclusively from Hertz for decades. However, the last two times we rent from them, we were very unhappy with... everything. We were horrifically overcharged and not given the lowered rate that was offered through AAA. Then, the last trip I made a point of filling up the car before we turned it in. The station was two blocks from the airport. I took pictures of everything, the mileage, the odometer, with extensive pictures of the interior and exterior, and I was glad I did. They tried to charge us for the fuel, and for damage to the back seat, which we had never even used, not even opened the doors to the back seat area. They refused to honor the AAA rebate. I got with my credit card company and told them I refused to pay the bill, showing them everything, and gave them digital pictures with metadata to prove my assertions. Then I began my campaign with AAA, telling them that twice in a row they had refused to give us the AAA rate.
    It was not at one office. The first time was in San Diego, the last time was in Dallas. My credit card company did take the entire charge off my card and I let them fight it out with Hertz. This was about four years ago and we've used Enterprise ever since.

    • @caroltanzi29
      @caroltanzi29 5 місяців тому

      I love Enterprise! Good cars, good service and very accommodating. Carol from California

  • @StevenKluber
    @StevenKluber 3 роки тому +144

    RCA owning Hertz. It sounds like a sharp idea, but ultimately fell flat.

  • @KalodexD
    @KalodexD 3 роки тому +225

    I'm sure there's more decline videos on the way.

    • @angusmacfrankenstein7227
      @angusmacfrankenstein7227 3 роки тому +6

      Pessimist!
      😹

    • @PrydeWater901
      @PrydeWater901 3 роки тому +9

      Hooters

    • @JBM425
      @JBM425 3 роки тому +5

      I read a Wall Street Journal article today about the demise of the Branson/Virgin travel empire. It said that Branson's Virgin Group, "whose business sprawls across cruises, hotels, airlines and trains, is being devastated from all angles." Virgin America was bought out by Alaska Airlines a couple years ago, Virgin Australia was declared insolvent about four months ago, and now Virgin Atlantic has file for bankruptcy. A deal with US private passenger rail operator Brightline Trains collapsed. About the most high-profile transportation assets Branson has left are Virgin Galactic (which after so many years has yet to fly a paying passenger into suborbital space) and Virgin Hyperloop.

    • @roncur
      @roncur 3 роки тому

      Yup A lot of them !

    • @madisonatteberry9720
      @madisonatteberry9720 3 роки тому +5

      Oh I hope so.....well that sounded better in my mind.
      But his 'decline of' are my favorite, and also teaches us what 'not' to do if we start a business of our own.

  • @brandonsaquariumsandterrar8985
    @brandonsaquariumsandterrar8985 3 роки тому +227

    Can you do a video called corona-kills, where you go over every single business that the virus killed, like Hertz, chuck e cheese, and other business

    • @jonahwagner4175
      @jonahwagner4175 3 роки тому +9

      I like this idea

    • @brandonsaquariumsandterrar8985
      @brandonsaquariumsandterrar8985 3 роки тому +3

      @@jonahwagner4175 Thank you!

    • @trainfan4449
      @trainfan4449 3 роки тому +7

      This is an interesting idea, but looking T it the exact way you worded it, "every single business that the virus killed", is imposible, as so many indepentant and corner stores vanished instantly. Putting it logically with bigfer more well known companies, he has Already done a couple of them.

    • @lionelhuts875
      @lionelhuts875 3 роки тому +9

      The virus and overzealous governors.

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +15

      You'd have to come up with some working definition of "murder by Covid", since a lot of the companies that are going out of business now were already circling the drain. The pandemic sped things up, but it wasn't the main reason a lot of them went under.

  • @johndelong7795
    @johndelong7795 3 роки тому +158

    I'd like to see a merger between Hertz and Dunkin. Then you could order a Hertz Donut.

    • @tonysfreshpepperoni4802
      @tonysfreshpepperoni4802 3 роки тому +5

      Punches in face

    • @rosegroshek1218
      @rosegroshek1218 3 роки тому +10

      There is already a real Hertz donut company. (Actually they spell it Hurts) And it is awesome

    • @craig8128
      @craig8128 3 роки тому

      It’s a Eurorack module.

    • @mauricemaple1430
      @mauricemaple1430 2 роки тому +1

      Im way late but you just made my day.

    • @topsykretts7642
      @topsykretts7642 2 роки тому +1

      @@rosegroshek1218 Springfield, MO. Their donuts are phenomenal

  • @Mr.Bluenails
    @Mr.Bluenails 3 роки тому +92

    It hertz my heart that they filed for bankruptcy

  • @Zero-sp6lq
    @Zero-sp6lq 3 роки тому +17

    Multiple companies going out of business
    Company Man : *it's free real estate*

  • @FingeringThings
    @FingeringThings 3 роки тому +131

    It must Hertz to see them have a rough time

  • @Duke00x
    @Duke00x 3 роки тому +17

    "Then they were sold to a private equity firm" That is what wong.. Every damn time.

    • @JBM425
      @JBM425 3 роки тому +2

      Have any of those equity firm deals ever actually helped a company in the long term? Or, did they only help the equity firm managers?

    • @Duke00x
      @Duke00x 3 роки тому +1

      @@JBM425 Yes and no. There are some cases where the equity firm does its thing extracts everything they can and files for bankruptcy then the company comes back a lean, mean , fighting machines and ends up doing better than ever now that they are better focused and got rid of excess. And I guess you could say that if the equity firm had not come in and did its thing and then forced them into bankruptcy they would have never re-found their focus or gotten rid of the bloat. But this also sometimes happens with companies that filed for bankruptcy without the involvement of equity fims it also often times involves new management (or the return back of older/original management) so they can also be said to be the reason.

  • @Astral0G1
    @Astral0G1 3 роки тому +95

    Yea their share price is pretty fickle. Obvious loser company at this point.

  • @e.m.p.3394
    @e.m.p.3394 3 роки тому +24

    Lemme tell you my experience with HERTZ. Me and my large family made it into Toronto from DRIVING from Florida. It was around 2 am. We had to get a rental for some unknown reason. I believe we had to pick up another family member from the airport. I can't go into details since I was a little kid. Anyway. We rented a car from them days before and scheduled for it to be waiting for us. Lo and behold. Little kids are lined up outside alone in the freezing cold with their family. For HOURS. In fact Hertz never refunded us either or got us the car. So we had to rent from some other joint after A long walk to another place. Worst night ever. Besides my 4th of July in east saint louis.

    • @e.m.p.3394
      @e.m.p.3394 3 роки тому +3

      @xPineapple 🤣 Well. My grandmother's key broke at around midnight when we tried to get inside the house. Now its dark and we're starving. So my dad had to break into my grandmother's house to let us in. We were stuck there for hours. No good food or spending time with other family. Stuck in the dark uncomfortable outside mosquitoes eating us alive.

    • @e.m.p.3394
      @e.m.p.3394 3 роки тому

      @xPineapple You have no idea.

    • @andrewarmstrong2586
      @andrewarmstrong2586 3 роки тому

      Overbooking is super common at airport locations ....

    • @e.m.p.3394
      @e.m.p.3394 3 роки тому

      @@andrewarmstrong2586 Yes but we had booked days before

  • @TBustah
    @TBustah 3 роки тому +14

    Hertz actually had an indirect connection to Ford prior to the 1980s: the Shelby GT350H. Shelby wasn’t owned by Ford back then like they are now, but what it comes down to is that Ford was sending partially completed Mustangs to Shelby, Shelby was turning them into Shelby Mustangs, and some of them with special black and gold (Hertz colors) paint jobs were sold to Hertz to be rented out to people. Sometimes Hertz would get cars back with parts or entire engines swapped out for lower-spec stuff or find evidence of roll cages being welded in.

    • @kylesoler4139
      @kylesoler4139 3 роки тому +1

      Rental performance cars sounds like a great Idea at first, but yeah they would end up having a rough life.

    • @donnafromnyc
      @donnafromnyc 2 роки тому

      One of those GT350Hs was on display at the Hertz HQ in Park Ridge NJ, alongside a Hertz car from the 1920s. Wonder what happened to it as they moved to FL years ago and now with the bankruptcy a big asset.

    • @TBustah
      @TBustah 2 роки тому

      @@kylesoler4139 Companies that do it today usually put tracking equipment on board so that they can tell if the car has been taken to a race track. If the customer paid for track insurance (which costs more), no big deal, they can go on their merry way. If they didn’t, they’ll either get slapped with a fine and a ban or (depending on how much mileage or damage there is) a lawsuit.

  • @TaxTimeForever
    @TaxTimeForever 3 роки тому +19

    I remember when I was young, people always offering me a Hertz Donut. How is that subsidiary doing?

  • @wesleyd5315
    @wesleyd5315 3 роки тому +3

    My wife and I rented from Hertz when we honeymooned in Juneau, Alaska. That car was an absolute hero, considering we flew in and most of our tours were through companies assuming we would be on one of the cruises parked right in the city's harbor rather than sleeping in a hotel on the outskirts. No bus for us. I have a positive opinion of Hertz now, and I hope they pull through.

  • @votekyle3000
    @votekyle3000 3 роки тому +61

    As a long time Avis employee, that ownership history mirrors our own.

    • @wasd-moves-me
      @wasd-moves-me 3 роки тому +2

      Lemme ask you is rental car insurance a scam?

    • @PrydeWater901
      @PrydeWater901 3 роки тому

      🏃🏾‍♀️ RUN!!! 🏃

    • @votekyle3000
      @votekyle3000 3 роки тому +8

      rtx/on if you’ve got full coverage car insurance, you don’t need it. If you’re traveling international, buy it. Always book at least a midsize.

    • @JimmySand9
      @JimmySand9 3 роки тому +3

      Avis was once owned by a food conglomerate called Beatrice, for example.

    • @wasd-moves-me
      @wasd-moves-me 3 роки тому +1

      @@votekyle3000 yea were planning a trip and renting for a week they had a promo $10 a day for 100% coverage it gets totalled we walk away no deductable nothing so it was add about $70 in insurance for a $300 rental just curious appreciate it

  • @existentialerasure
    @existentialerasure 3 роки тому +81

    Back in the late 60's and early 70's OJ was HUGE, those commercials got a lot of attention. It was later that he became a murderer (IMHO) and the despicable person he is known as now.

    • @omarally7655
      @omarally7655 3 роки тому +6

      pardon my history but wasn't he acquitted? (sorry never watched the netflix show also was too young back then)

    • @existentialerasure
      @existentialerasure 3 роки тому +9

      @@omarally7655 OJ lost the civil suit and was found liable for the murders.

    • @Jim-so3zm
      @Jim-so3zm 3 роки тому +4

      @@Wohlfe Which in turn inspired the South Park Chewbacca defence

    • @nslouka90
      @nslouka90 3 роки тому +2

      He was also in Naked Gun

    • @existentialerasure
      @existentialerasure 3 роки тому +2

      @@nslouka90 His first TV show appearance was a show called Medical Center after he had been drafted by the Bills. Everybody stayed home to watch it. Few have matched his raw star power at the time.

  • @IAmNotAFunguy
    @IAmNotAFunguy 3 роки тому +13

    Do a video on Stein Mart. They just filed for bankruptcy today!

    • @Hopeguz3
      @Hopeguz3 3 роки тому

      Dang really? Brings me back.

    • @john091077
      @john091077 3 роки тому

      That is one depressing store. Every one I have gone into has had the a/c cranked to like 60 degrees, it's dark as crap inside and only like 2 very old ladies shopping at a time.

    • @ilurvemv
      @ilurvemv 3 роки тому +1

      Many years ago, after a Stein Mart store opened in my town, we were driving by and stopped to check it out. We left within a few minutes because my mom said the prices were outrageous. We were the only ones in the entire store and it was empty and the owner was standing by the door waiting to see if anyone would come in when we left.

  • @pucketthagen
    @pucketthagen 3 роки тому +11

    Nabisco-Mondelez would be a very interesting episode the history is more complicated then most know

  • @RolandBizjets
    @RolandBizjets 3 роки тому +6

    Yeah. They once froze all money on my bank account and didn’t release for a month after the rent. Never again.

  • @TheNASCARJeff
    @TheNASCARJeff 3 роки тому +26

    You missed Roger Penske, for a while in the middle 1990's Penske Corp had a stake in Hertz and it was called Hertz/Penske that included cars and truck rental.

    • @WillHendersonTX
      @WillHendersonTX 3 роки тому +1

      and you watch in the near future, Rick Hendrick buys out Hertz and adds it to his already big car dealership empire. after all, Hertz does sponsor the #24 car in the NASCAR Cup Series and that's one of the 4 Cup Series cars owned by Rick's Hendrick Motorsports team.

    • @TheNASCARJeff
      @TheNASCARJeff 3 роки тому

      @@WillHendersonTX I totally agree with that!

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +2

      We've still got a Penske truck rental place where I live. They must have spun that side of the company off at some point.

  • @cuzzindave
    @cuzzindave 2 роки тому +3

    I called our local Hertz the other day. They didn't even answer the phone. I went with a competitor! I'm always so happy when things must look better for a company that they can afford not to answer the phone for the next customer! 😂

    • @batboy555
      @batboy555 2 роки тому

      I had the same problem. Oh and no cars anywhere in Louisiana I could change out.

    • @centralrnrockets3500
      @centralrnrockets3500 Рік тому

      Keep in mind that you can geniunly be busy and can't answer the phone 😐

    • @chandlerh2408
      @chandlerh2408 9 місяців тому

      That seems like a crazy overreaction, have you never missed a phone call?

    • @ProfAzimov
      @ProfAzimov Місяць тому

      ​@@chandlerh2408 Wasn't their branding about convenience?

  • @702octopus
    @702octopus 3 роки тому +13

    Honestly i see the rise of app based taxis as the biggest reason for their recent decline outside of the pandemic. I drive Lyft in Las Vegas... People told me all the time its their prefered way to get around when they travel. No rental fees or gas refils, in tourist hotspots places are stratigicly close together so in the end they safe a bunch of money by ride hailing and group ridesharing. Even without the pandemic, rental cars are on borrowed time in my opinion.

    • @JBM425
      @JBM425 3 роки тому +3

      There will always be a market for rental cars for people who travel extensively once they reach their destination airport, as I usually do. As you correctly note, if people are simply needing a ride from the airport to a hotel and just walk around the Vegas Strip (or any major tourist destination where everything is within reasonable walking distance), it makes no sense to rent a car. Ride sharing or an airport shuttle is all those people need.

  • @ppioneer1417
    @ppioneer1417 3 роки тому +67

    Robinhood invester be like. What do you mean hertz only go up

    • @nslouka90
      @nslouka90 3 роки тому

      🚀

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +4

      YOLO - it's not just a meme, it's a trading strategy.

    • @bahlee1013
      @bahlee1013 3 роки тому +1

      Was there for that boom. Love it

    • @John-uz7ti
      @John-uz7ti 3 роки тому

      Don't believe the hype

  • @BLAngel1
    @BLAngel1 3 роки тому +6

    The thing I remember about O.J.’s commerials was the line. ”Brutal Juice”

  • @BillyGc
    @BillyGc 3 роки тому +2

    I love this channel. I can listen and understand his voice and it isn't annoying. The information is very valuable and sometimes shocking. I literally binge watch this channel all the time.

  • @devincreislerstudios
    @devincreislerstudios 3 роки тому +16

    Turned 25 in April. Yay I can finally rent a car! Oh wait never mind.

    • @schalitz1
      @schalitz1 2 роки тому +1

      Hertz will actually rent to 18 year olds now since the flu started I've rented from them twice this year (2021) and I'm only 20.

  • @shannon21229
    @shannon21229 3 роки тому +15

    Do the decline of ecko!

  • @theactualTVB
    @theactualTVB 3 роки тому +18

    You could say... Hertz is feeling a bit _hurt_ recently...
    i’m sorry that was bad

    • @angusmacfrankenstein7227
      @angusmacfrankenstein7227 3 роки тому +2

      As I’ve said elsewhere, the daddy humor is strong in this thread...

    • @kekereacts5448
      @kekereacts5448 2 роки тому +1

      Lol; is this company man commenting secretly ?

  • @saladglove
    @saladglove 3 роки тому +2

    I dont know how but all of your videos are always so fascinating and entertaining. Like before finding your channel i would have never considered thinking about the stories of these brands. It's kinda magic how interesting you can make the backstory of a car rental place sound like. Keep up the good work!

  • @nahyan
    @nahyan 3 роки тому +4

    Amazing video as always, keep it up Company Man!

  • @FinancialShinanigan
    @FinancialShinanigan 3 роки тому +17

    Crazy thing is they tried to sell more stocks to pay down their debt even though their stocks were worthless and only went up because of retail investors.

    • @AnalyticalMenace
      @AnalyticalMenace 3 роки тому +1

      Basically this.
      Why does this suddenly remind me of Enron?

  • @Axel1617
    @Axel1617 3 роки тому +3

    I love Hertz and have done lots of business with them in the past.

  • @harmlessbasket304
    @harmlessbasket304 3 роки тому +73

    Hertz don't it?
    Gottem

  • @alexdaily2564
    @alexdaily2564 3 роки тому

    I totally asked for this video weeks ago lol, awesome videos man. Can't wait until you make videos about the oil companies declining

  • @michaelkeller8072
    @michaelkeller8072 3 роки тому +17

    They were to slow in getting into the insurance rental business in the early 2000s and spreading out the business from just travel. Then Enterprise got into the travel rental business big time in late 1990 into 2000s.

    • @t_ylr
      @t_ylr 3 роки тому +2

      They also have terrible customer service. I work at an insurance company and we have a contract with Hertz. People hate them. They're always telling me their customer service horror stories.

  • @rogerholloway8498
    @rogerholloway8498 3 роки тому +3

    If all of the branches treated their customers like the last time I used them, I swore I would never use them again. They overcharged me grossly, meaning the company limit was exceeded, so I was pout of pocket and the car I rented (in advance) was nowhere in sight. The air conditioner worked for about 15 minutes and the car had a red light dashboard smorgasbord - they wouldn't trade me out. I can say I smiled a great deal when I heard this delicious news.

    • @br4524
      @br4524 Рік тому +1

      At least you didn't get arrested

  • @MichiganCheesesteak
    @MichiganCheesesteak 3 роки тому +1

    When I see that Company Man has a new upload it's the first video I watch! This is probably the only channel where I've watched every video. Great content!

  • @Sonny0276
    @Sonny0276 3 роки тому

    Great Video. Thank you for posting.

  • @hewhohasnoidentity4377
    @hewhohasnoidentity4377 3 роки тому +5

    When a company gets repeatedly sold and the debt goes up it is a sign that the board realizes the organization is essentially bankrupt but not quite past the point of turning it around. There are no consequences for them to drain it, so they do a series of restructurings and add major transaction fees and executive sign on bonuses for a "turn around" CEO, CFO and COO, followed by their contract termination fees when they can't turn it around then repeat until they can't find another hedge fund to roll over the debt. Then the executive team and the lawyers still get a couple years of work dissolving the entity..

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому

      What's that old saying - "It's hard to get a man to understand something if his job depends on him not understanding it" or words to that effect? When the system is set up to reward people for focusing on short-term profits instead of the long-term health of their businesses, this is the result.

  • @Hopeofmen
    @Hopeofmen 3 роки тому +6

    I rented a car from them the day before they declared bankruptcy...still payed out my nose for it, even though it was a lower-tier car. :/

  • @danlancaster2239
    @danlancaster2239 3 роки тому

    Excellent job as always, keep up the good work and thank you.

  • @GeorgeWMays
    @GeorgeWMays 3 роки тому

    Very interesting. Great video as always. Thanks. It's appreciated.

  • @davidhonkstvorisit4811
    @davidhonkstvorisit4811 3 роки тому +8

    This really Hertz the rental car industry

  • @digitalfootballer9032
    @digitalfootballer9032 3 роки тому +10

    "Sliding down the flagpole"
    ~ by Richard Hertz

    • @KEVINCELLULAR
      @KEVINCELLULAR 3 роки тому +1

      Lines in the sand. By Peter Dragon.

  • @chewycenter7690
    @chewycenter7690 3 роки тому

    Excellent video. Got the history stuff that keeps me watching but also cold, hard business analysis.
    I swear this guy's gonna go pro soon.

  • @luangj2866
    @luangj2866 3 роки тому +2

    Very well made videos as always!

  • @hectorvalen2876
    @hectorvalen2876 3 роки тому +71

    I’m sure Uber and Lyft had something to due with their decline.

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +3

      Interesting to consider. Do you think that people have been renting fewer cars because of the prevalence of rideshare companies? Those seem to be two different types of customer without much crossover but I might be missing something. Maybe people are deciding not to rent cars because it's so much easier to get a "taxi" now?

    • @PrydeWater901
      @PrydeWater901 3 роки тому +9

      Raskolnikov70 I’m actually a Hertz Gold Club member and on my last vacation downloaded the Lyft app just to keep from driving. I’ve realized that I’d really rather not rent a car while vacationing anymore. I can’t be the only one who feels that way. The impact is far greater than most want to admit, although Hertz was on shaky ground before the rideshare boon.

    • @Phoenix_254
      @Phoenix_254 3 роки тому +2

      I’m not so sure, to me Uber/Lyft and rental cars serve two different functions. The ride shares, to me at least, serve short term needs. Airport to hotel, to and from a arty where large amounts of alcohol is involved, day trips. Whereas car rentals generally serve best as more long term solutions. For example: your car is in a shop for days if not a week, vacations where you are traveling to a lot of locations, and other longer term solutions until a permanent arrangement can be made.

    • @t_ylr
      @t_ylr 3 роки тому +1

      They also have terrible customer service. I work at a company that puts people in rental cars and We have a contract with Hertz. People hate Hertz. They're always telling me their customer service horror stories.

    • @travisalexphoto
      @travisalexphoto 3 роки тому

      It did. They are a massive scam and constantly kept losing money on their cars.

  • @chriswelch9328
    @chriswelch9328 3 роки тому +14

    Hertz also seems to be in the “Blockbuster” category, and I think even Enterprise and Avis and al them suffers from this as well. They are caught up in their own success and not adapting to the changes of the modern time. With all those cars, why not try reaching a deal with Uber or Lyft? That way they can reduce cars not being used (too many assets, not enough activity) and always available for when things go in high demand. This can also help bring in new drivers who have licenses in their criteria but can’t afford their own cars. It seems like something needs to change with their business models that reflects the current time period.

    • @Fix-it-tony
      @Fix-it-tony 3 роки тому +2

      Enterprise has a deal with Lyft and Uber, it’s not profitable.

    • @chriswelch9328
      @chriswelch9328 3 роки тому +1

      Anthony Borquez then it needs to make changes too. I didn’t know they had one. Which may show one reason why it’s not profitable.

    • @davidmendez9256
      @davidmendez9256 2 роки тому

      And now In 2022 there is a rental car shortage lol

  • @Jim-so3zm
    @Jim-so3zm 3 роки тому +2

    It's actually rather comforting that in the ocean of insanity around us Company Man still remains his calm, dispassionate self.

  • @timallison8560
    @timallison8560 3 роки тому +1

    i went to a hertz location once at tampa airport as i had heard they were hiring a supervisory position and i have that experience. i went at 11am, before lunch hour. i drove through the gate to a building surrounded by cars, but no one stopped me. this was not a building where you rent the vehicles, this was a building out by itself. i found it strange that the gate was not guarded and that no one was around. i walked into the building into a front lounge type area with a front desk, and sat in some chairs. i sat for about 15 minutes and no one even noticed i was there, no one ever came to the desk, or even to the lobby. no one. i walked up to the desk and started saying, hello, hello. no one came. i could see a hallway, and there were offices off the hallway that led back to what seemed to be a breakroom. the first office was about ten feet from the fron desk, and all of the roughly six to eight offices had the doors open. i walked over and peeked in the first office, there was a human typing at a desk, she turned and looked at me, then turned back and just started typing again. no acknowledgment i even existed. i repeated this process all the way to the break room. in the break room there were about three or four people. i walked in waiting for acknowledgement, or a who are you, can i help you? nothing. they too looked at me with lifeless sad eyes then back to whatever they were doing. i had a seat there for about 15 minutes. i got up and left. if this was how they ran a company, i thought damn, i thought i worked in a toxic environment.

  • @chris1har
    @chris1har 3 роки тому +16

    I’m gunning for the rise and fall of Safeway or A&P again

    • @WhatAm1doinggg
      @WhatAm1doinggg 3 роки тому +1

      safeway is a subsidiary of a subsidiary of a subsidary (Safeway, Albertsons, holding company-renamed Albertsons, Cerberus) safeway ain't goin anywhere. Albertsons and Kroger are now king kongs of the grocery chains.

    • @chris1har
      @chris1har 3 роки тому

      Nick Tansy I know they’re fine now, but Safeway used to be like everywhere and they’re not any longer. So there has to be a fall there somewhere.

  • @Impossible_Fishy
    @Impossible_Fishy 3 роки тому +71

    I have no idea what Hertz is
    That hertz

    • @BELCAN57
      @BELCAN57 3 роки тому +1

      " Mega-Hertz" is a larger version.

    • @later_skateboards
      @later_skateboards 3 роки тому

      Wow.

    • @angusmacfrankenstein7227
      @angusmacfrankenstein7227 3 роки тому +2

      The daddy humor is string in this thread...

    • @JaKingScomez
      @JaKingScomez 3 роки тому +3

      Thought it had something to do with pretzels

    • @locke103
      @locke103 3 роки тому +1

      @@BELCAN57 i hear the game got stepped up with "giga-hertz"

  • @Smooththatsme
    @Smooththatsme 3 роки тому +1

    This channel is just awesome! You do a very good job with the content you put out one here. I first subbed you’re channel after watching the video where you had the fall of TWA and was hooked ever since, I would like to see you do a video on the rise of Chase bank. I think that would be a really good one

  • @jamreviews9547
    @jamreviews9547 3 роки тому +1

    I always learn something new in every video you post.

  • @jmar1973
    @jmar1973 3 роки тому +5

    I'll always hold Hertz in high regard for my first trip to Vegas.
    I reserved an economy car,but I was offered an on the spot upgrade to a Mustang convertible for $5 more a day,which I graciously accepted.
    Drove all around Vegas and in the desert in my Star Trek uniform (I was there for the convention.)
    They'll always have a soft spot in my heart. ❤😹

  • @Fightingmoon341
    @Fightingmoon341 3 роки тому +63

    I’ve never ever hertz of this company

  • @WanderingVeteran
    @WanderingVeteran 3 роки тому +1

    I have been craving to see more videos on Hertz, I find what happened fascinating.

  • @victorcanetejr.3730
    @victorcanetejr.3730 3 роки тому +1

    Great video as usual. You should definitely do more on companies affected by the pandemic.

  • @WaynoGur
    @WaynoGur 3 роки тому +7

    Just once I wanted OJ to land on the gear shift knob. He'd really know Hertz.
    They used to have a large reservation centre in Oklahoma City. I wonder if that gone?

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому

      It probably got replaced by an internet server years ago. Most people make their travel reservations online now, not by calling a human and doing it over the phone.

    • @Noahsjones
      @Noahsjones 3 роки тому

      Hertz still exists in OKC, but have consolidated their ops into one building (where they have several previously). They also outsourced the reservations.

  • @UnenthusiasticPerson
    @UnenthusiasticPerson 3 роки тому +4

    I was actually waiting for him to say Hertz was sold to John Hertz the third. You know grandson of the original John Hertz. I guess there’s still time on the follow up.

  • @devingiles6597
    @devingiles6597 3 роки тому +2

    Company Man, I have some suggested topics you should cover in future videos.
    Suggestions:
    Netflix - Why They're Successful
    General Mills - Bigger Than You Know
    The Decline of Circuit City...What Happened?
    TikTok - Why They're Successful
    In-N-Out Burger - Why They're Successful
    Berkshire Hathaway - Bigger Than You Know
    UA-cam - How It Started
    Discovery, Inc. - Bigger Than You Know
    The Decline of KB Toys...What Happened?
    ViacomCBS - Bigger Than You Know
    The Decline of Pizza Hut...What Happened?
    The Decline of MySpace...What Happened?
    Hanna-Barbera - The Rise and Fall
    The Great Recession of 2008
    Hasbro - Bigger Than You Know
    McDonald's vs Burger King
    Twitch - Why They're Successful
    Samsung - Bigger Than You Know

  • @rosendoescutia9970
    @rosendoescutia9970 3 роки тому +1

    Almost at that 1 million milestone! Hope there’s a good video marking that achievement 👍

  • @sokenzi
    @sokenzi 3 роки тому +18

    I used to work for them....I am not surprised. The cars were in horrible condition almost of the time.

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +1

      I saw that they were selling their surplus cars online a while back and considered buying one. Then I looked at their financial status and thought "yeah... probably not." A company with that much debt is clearly not going to spend money on maintenance if they can help it.

    • @sokenzi
      @sokenzi 3 роки тому +1

      Raskolnikov70 I worked for the Uber division of the company and all of the cars had Maintenance issues. It was a know fact.

    • @matthewbowen5841
      @matthewbowen5841 3 роки тому

      That was Frissora's fault.

    • @JBM425
      @JBM425 3 роки тому

      Just as with the airlines, rental companies turn around cars so quickly anymore with as little labor as they can get away with, they don't always get more than a cursory cleaning.

    • @JBM425
      @JBM425 3 роки тому

      @@Raskolnikov70 I would not be too worried about that if the cars are under or right around 20,000 miles. I have seen some relatively high-mileage rentals on the sale lots that would give me pause.

  • @DBR00
    @DBR00 3 роки тому +18

    Quite simple: They say, “Hertz, We’ll pick you up.” However, the one time I needed to rent with them, they didn’t. So I never used them again.

    • @jsnwbbr
      @jsnwbbr 3 роки тому +6

      Considering that's Enterprise's slogan.....

    • @miguelmejia4656
      @miguelmejia4656 3 роки тому +1

      @DBR00 they tried hard upselling me a car rental at the airport to the point of repulsion. they also claimed I damaged their car when it already came like that. I hate them. I never used them again.

    • @taylorbrewton8777
      @taylorbrewton8777 3 роки тому +1

      Wrong company slogan, bud

  • @chiot2875
    @chiot2875 3 роки тому

    I didn’t have my sound on yet but your intro still played in my head, simple and catchy

  • @trystanpalmer3969
    @trystanpalmer3969 3 роки тому +1

    I was thinking earlier how I wanted to see you do a video on Big Dog Sportswear. I remember them being all over the place in my childhood, but I haven't seen anything from them in years. I thought they were out of business. I looked them up today and was surprised to see they are still around! I think it would be a very interesting video with a little nostalgia.

  • @kelmouse29
    @kelmouse29 3 роки тому +57

    Everything went downspiral when it became very corporate instead of helping consumers and workers

    • @AxxLAfriku
      @AxxLAfriku 3 роки тому

      My haters throw rocks at me and it hurts. I hope they don't throw The Rock at me because I like him as an actor. GAGAGAGAGA!!! I am funny!!! For more amazing jokes you have to visit my YT site, dear k3l

    • @leecommander4427
      @leecommander4427 3 роки тому +2

      AxxL what

    • @rrai1999
      @rrai1999 3 роки тому +4

      @@AxxLAfriku Worst comment ever

  • @hoobidibahbidibah8119
    @hoobidibahbidibah8119 3 роки тому +14

    The company's (un)official statement when their profits took a hit from the pandemic:
    "Ouch, that Hertz."

  • @isaiahcounts6889
    @isaiahcounts6889 3 роки тому +1

    Tell me why this is like my fav channel now 😂😂😂 love this info

  • @cadillacdeville5828
    @cadillacdeville5828 3 роки тому +1

    Thanks as always 👍

  • @KEVINCELLULAR
    @KEVINCELLULAR 3 роки тому +3

    10:15 How in the world did you get a picture of my wallet?

  • @joecoolio
    @joecoolio 3 роки тому +3

    What happened to the restaurant chain Tony Roma’s?

  • @SinisterShelby
    @SinisterShelby 3 роки тому

    Have you ever made a video about Belk? Love the channel. Keep it coming!

  • @DynaMike101
    @DynaMike101 3 роки тому

    I love your videos. Its can be something i couldn't care less for but i watch it period.

  • @ryan_d
    @ryan_d 3 роки тому +9

    can anyone tell me why company man has gloves on in his profile picture

    • @NicholasLittlejohn
      @NicholasLittlejohn 3 роки тому +1

      Fingerprints

    • @msbae
      @msbae 3 роки тому +1

      Because he's the 'real killer' that OJ has been looking for on golf courses for the last 25 years... :P

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +1

      If the gloves don't fit, you must acquit. Now, this is Chewbacca.....

    • @companyman114
      @companyman114  3 роки тому +4

      Not gloves, just the way the sleeves look.

  • @AverytheCubanAmerican
    @AverytheCubanAmerican 3 роки тому +8

    They were continuously going downhill and then the pandemic really did it to them. Interesting learning the history of the company

    • @susanhainan188
      @susanhainan188 3 роки тому +2

      Avery the Cuban-American you are everywhere

  • @LeesReviews69
    @LeesReviews69 3 роки тому

    This video compared to your first videos, omg you’ve gotten so much better! When are you going to do a video on Tesla?

  • @Sir.VicSmasher
    @Sir.VicSmasher 3 роки тому +1

    Love Hertz. I rented one of their Corvette Z06's because they didn't have the Mustang GT I reserved to take to the racetrack where family members had their own race cars. Best $420 OTD i've spent.

  • @anchorbait6662
    @anchorbait6662 3 роки тому +27

    Person #1 "Hertz was a good company"
    Person #2 "Not exactly"

  • @JorgeRodriguez-fy7du
    @JorgeRodriguez-fy7du 3 роки тому +4

    Do "How did Company Man get so big?"

  • @boreal9658
    @boreal9658 3 роки тому

    Amazing video, great work like always! GMC would be a cool video to see, number 40 in the global 500 which I didn’t think they were that big.

  • @billmerryman5270
    @billmerryman5270 2 роки тому

    You've got a great UA-cam Channel. Congrats!

  • @seabass62yearsago
    @seabass62yearsago 3 роки тому +4

    Gonna be honest. I’ve never even heard of “hertz”

  • @cecollins68
    @cecollins68 3 роки тому +4

    Made a ton of money on there recent rise everyone was saying it was a bad investment (which is true 😂) but it's only terrible if you held.

  • @w.s.mcgallis7731
    @w.s.mcgallis7731 3 роки тому

    I missed this one.
    Thank you, it's an interesting industry.

  • @juandaltonius69
    @juandaltonius69 3 роки тому

    I never thought I would enjoy Wednesdays so much! Thanks for the vids.

  • @SupremeLeaderKimJong-un
    @SupremeLeaderKimJong-un 3 роки тому +9

    The pandemic is the nail in the coffin for several businesses. This is what happens when your country doesn’t take things seriously. One case was all it took to shut down an entire city for us

    • @NicholasLittlejohn
      @NicholasLittlejohn 3 роки тому +3

      Wishing you a speedy recovery and please don't shoot missiles at us 🙏🏽

  • @aidankelly8899
    @aidankelly8899 3 роки тому +4

    why is this youtube kids like wtf i can’t get notifications now for u i only saw it because i was surfing the subscription tab

    • @Raskolnikov70
      @Raskolnikov70 3 роки тому +1

      That's the only way I use UA-cam anymore, by going to the subscription page. The front page and suggestions are completely manipulated and full of stuff YT is pushing down our throats, not stuff we want to see based on our history.

  • @williamxb
    @williamxb 3 роки тому

    Great video.

  • @davidnakashima8621
    @davidnakashima8621 3 роки тому +2

    When hertz got ride of the heavy equipment side the car side suffered and the heavy equipment side got better and is now opening up new stores