Home News Two lawmakers want Hertz, Avis to answer questions on rising U.S. rental prices By Reuters

Two lawmakers want Hertz, Avis to answer questions on rising U.S. rental prices By Reuters

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Two lawmakers want Hertz, Avis to answer questions on rising U.S. rental prices By Reuters



© Reuters. FILE PHOTO: The logo of U.S. car rental company Hertz is seen at Bordeaux airport in Mérignac, southwest France, on February 4, 2016. REUTERS/Regis Duvignau // File photo

David Shepherdson

WASHINGTON (Reuters) – Two U.S. House Democrats told Hertz Global Holdings (OTC: ) on Friday Avis Budget (NASDAQ: ) The panel answers questions about rising rental car prices and higher industry profits.

Representative Raja Krishnamoorthi, chair of the Economic and Consumer Policy Subcommittee, and Representative Katie Porter, said both car rental companies appeared to have used their market position to raise prices as fees fell.

In a statement, they said they wanted the companies to provide documents and information by April 1 explaining why rental car prices have risen despite falling costs, as well as a list of any known investigations into those price increases.

The companies did not immediately respond to requests for comment.

The lawmakers’ letter said the financial results suggest the companies “may be prioritizing maximum profits and

shareholder payments at the expense of consumers” and “may have

Engage in predatory business practices during the pandemic, exploiting consumers who rely on affordable rental car prices. “

Last month, Hertz posted a record adjusted profit in the fourth quarter as demand for rental cars remained strong, but restructuring costs after bankruptcy generated a huge net loss.

Avis Budget reported record revenue in February https://ir.avisbudgetgroup.com/news-releases/news-release-details/avis-budget-group-reports-record-revenues-net-income-and and net income Quarter ended December 31.

Analysts said the increase in revenue was driven by sharp price increases across the industry as customer demand outstripped vehicle supply and consumers returned to rental counters for leisure and business trips.

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