US drivers turn to EV rentals as gasoline prices surge
By Aishwarya Jain and Nathan Gomes
April 23 (Reuters) – The first signs of a shift to electric vehicles at U.S. car rental companies have emerged as customers wary of paying more at the pump due to conflict in the Middle East.
At Hertz, which rents vehicles to Uber and Lyft drivers for longer terms than traditional rentals, EV reservation requests increased by approximately 25% in March compared to February. According to Doria Holbrook, vice president of Hertz’s mobility division, the strongest increase in demand for electric vehicle rentals has occurred on the West Coast, where gas prices are highest.
EV bookings on Turo, a peer-to-peer car rental service similar to real estate rental site Airbnb, rose 11% in the last three weeks of March compared to the previous three-week period. On March 31, when U.S. gas prices surpassed $4 per gallon for the first time since 2022, EV bookings on Turo were 47% higher than on the same day in 2025, the company said.
The Iran war has caused disruptions in the Strait of Hormuz off the coast of Iran, through which approximately 20% of the world’s oil and liquefied natural gas passes. Average gas prices in the United States have risen by more than a third to $4.02 per gallon since the war began on Feb. 28, according to the U.S. Energy Information Administration.
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Analysts and dealers say rising fuel prices generally don’t cause an immediate change in car-buying decisions. However, the severity of this price shock has already led many consumers to look for alternatives. In Europe, for example, EV registrations in 15 countries increased by more than 50% in March.
The impact in the US has diminished further. New EV sales fell 25% in March from a year earlier, according to Cox Automotive, as the expiration of the $7,500 tax credit last fall continued to dampen Americans’ appetite for electricity. But sales of used electric vehicles are growing rapidly, and renters appear more willing to make the switch to save on fuel in the short term.
Car Rental Gateway, a digital rental platform, reported a 16% relative increase in EV and hybrid bookings in March. Car Rental Gateway board member Hannes Põldvee said rental companies that invest heavily in electric cars could benefit if gasoline prices remain high.
Prices are recovering in the second-hand electric vehicle market
The sharpening demand for electric vehicles has also increased the prices of used electrical devices. John Coles, vice president of data science and analytics at ACV Auctions, an online platform used by dealers and rental companies to buy and sell used cars, said EV prices had been falling for months but rose following a rise in oil prices starting in early March.
