Google's Self-Driving Car Deal Boosts These Rental Car Leaders

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The services offered by Avis Budget Group include interior and exterior cleaning, oil changes, tire rotations, and the checking, ordering and installation of automotive parts, as well as other necessary fleet support and maintenance.

Avis Budget Group has made a deal to manage and maintain Waymo's fleet of self-driving cars. (NASDAQ:CAR) stock was up on Monday following news of a deal with Alphabet Inc's (NASDAQ:GOOG,GOOGL) Waymo.

But you're still going have to drive your own rental auto for the foreseeable future.

The maintenance deal does not appear to extend to the actual rental of self-driving cars; riders who wish to use Waymo's vehicles now must apply for permission to participate in the company's early rider program. The company adding hundreds of Fiat Chrysler Automobiles NV's (NYSE:FCAU) Pacifica minivans to its fleet. Area residents who want to use the service, which would operate like a taxi service, can apply to Waymo to become participants.

Waymo will pay Avis for its service, according to the report, but the companies would not share financial terms.

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'Avis Budget Group is an ideal partner to provide fleet support and maintenance'.

Avis Budget Group operates 11,000 rental locations around the world.

Shares of Avis initially surged as much as 21 percent on the news but by midday trading had fallen back to a 10 percent gain.

Officials highlighted this partnership will allow Avis Budget Group to service Waymo's growing number of cars on the road, ensuring Waymo's self-driving vehicles are ready for riders around the clock.

In a statement, Waymo CEO John Krafcik said Avis and its thousands of locations will allow Waymo to "bring our technology to more people, in more places". The company said it chose Avis for its experience quickly fixing and cleaning rental cars and for its presence across the US and overseas, which can help Waymo expand its program to other cities.

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