Avis Budget Group partners with Waymo for autonomous ride-hailing

PARSIPPANY, N.J. - Avis Budget Group, Inc. (NASDAQ:CAR) announced Tuesday a multi-year strategic partnership with Waymo to launch a fully autonomous ride-hailing service in Dallas, with public launch planned for 2026. The announcement comes as Avis’s stock trades near its 52-week high, having delivered an impressive 155% return year-to-date, according to InvestingPro data.

Under the agreement, Avis will serve as Waymo’s fleet operations partner in Dallas, providing infrastructure, vehicle readiness, maintenance, and depot operations. Waymo will offer its ride-hailing service to the public through its app while maintaining responsibility for the performance of its self-driving technology.

Initial testing of the service is already underway in Dallas, according to the press release statement.

"Our partnership with Waymo marks a pivotal milestone in our evolution, from a rental car company to a leading provider of fleet management, infrastructure and operations to the broader mobility ecosystem," said Brian Choi, Chief Executive Officer of Avis Budget Group.

Tekedra Mawakana, co-CEO of Waymo, stated, "We look forward to bringing our fully autonomous ride-hailing service to the people of Dallas next year, offering a new era of safe and seamless transportation."

The companies indicated plans to expand the autonomous mobility service to additional cities in the future, though specific locations were not disclosed.

This partnership represents Avis Budget Group’s expansion beyond its traditional rental car business into supporting autonomous vehicle operations, leveraging its expertise in large-scale fleet management.

In other recent news, Avis Budget Group has announced an upsized private offering to $600 million in senior notes, initially set at $500 million. These 8.375% senior notes, due in 2032, will be used for general corporate purposes, including potential repayment of existing debt. Additionally, Avis Budget Group has appointed Daniel Cunha as its new Chief Financial Officer, effective July 1, 2025, succeeding Izzy Martins. Cunha brings a wealth of experience from previous roles at Orion Services Group, Ocean Spray, and Heinz North America. Deutsche Bank has raised its price target for Avis Budget Group to $196, maintaining a Buy rating, citing a significant rise in car rental stocks.

In other company developments, Resources Connection, Inc. has made changes to its Board of Directors, appointing Jeffrey H. Fox and Filip Gydé. These appointments are part of a planned board refreshment and succession process. The new directors will serve on the Board’s Compensation Committee. These recent developments reflect the strategic moves by both companies to enhance their financial and leadership positions.

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