Herc Holdings Inc. (HRI): Business Model Canvas

Key Partnerships

Herc Holdings Inc. (HRI) has established key partnerships with various entities in order to enhance its operations and provide comprehensive services to customers. These partnerships play a crucial role in the overall business model of the company.

• HRI has partnered with leading equipment manufacturers to ensure a steady supply of high-quality machinery and equipment. This partnership allows the company to offer a wide range of products to meet the diverse needs of its customers.

• Partnering with service and maintenance providers helps HRI ensure that its equipment is well-maintained and in optimal working condition. This partnership is essential to providing reliable and efficient equipment rental services to customers.

• HRI has established partnerships with financing institutions to provide flexible and competitive financing options to customers. This partnership enables customers to access the equipment they need without having to make a large upfront investment.

• Collaborating with global resellers and distributors allows HRI to expand its reach and tap into new markets. This partnership helps the company increase its sales and revenue by reaching a wider customer base.

Key Activities

Herc Holdings Inc. (HRI) operates in the equipment rental industry, providing a range of services to meet the needs of customers across various sectors. The key activities of HRI's business model include:

• Equipment rental services: HRI offers a wide selection of equipment for rent, ranging from small tools to heavy machinery. Customers can easily access the equipment they need for their projects, whether it's for construction, landscaping, or industrial purposes.
• Sales of new and used equipment: In addition to rental services, HRI also sells new and used equipment to cater to customers who prefer to own the equipment outright. This allows HRI to serve a broader range of customers and generate additional revenue streams.
• Providing maintenance and support: HRI's commitment to customer satisfaction extends beyond the initial rental or purchase. The company offers maintenance and support services to ensure that the equipment is in optimal condition and operating efficiently throughout its lifespan.
• Fleet management solutions: HRI goes beyond simply providing equipment by offering fleet management solutions to help customers optimize their operations. This includes tracking usage, scheduling maintenance, and monitoring performance to enhance productivity and reduce downtime.

By focusing on these key activities, HRI is able to deliver comprehensive solutions to meet the diverse needs of its customers in the equipment rental industry.

Key Resources

Extensive fleet of rental equipment: One of the key resources of Herc Holdings Inc. is its extensive fleet of rental equipment. The company offers a wide range of equipment for various industries such as construction, industrial, and government. This allows Herc Holdings to cater to the diverse needs of its customers and maintain a competitive edge in the market.

Network of branches and distribution centers: Herc Holdings has a network of branches and distribution centers strategically located across the country. This network allows the company to easily reach customers in different regions and provide fast and efficient equipment delivery and pickup services. It also helps Herc Holdings to expand its market presence and increase its customer base.

Trained and skilled workforce: Another key resource of Herc Holdings is its trained and skilled workforce. The company invests in training and development programs to ensure that its employees have the knowledge and skills to provide excellent customer service. This helps Herc Holdings to build strong relationships with its customers and maintain high levels of customer satisfaction.

Online reservation and management platforms: Herc Holdings provides online reservation and management platforms that allow customers to easily book equipment rentals, manage their rentals, and access important information such as pricing and availability. These platforms streamline the rental process and provide a seamless experience for customers, helping Herc Holdings to attract and retain customers in a competitive market.

In conclusion, Herc Holdings Inc. leverages its key resources to provide high-quality equipment rental services to its customers and maintain its position as a leading player in the rental industry.

Value Propositions

Herc Holdings Inc. (HRI) provides a wide range of high-quality rental equipment to meet the diverse needs of its customers. Whether it's construction, industrial, or general tools, Herc Holdings Inc. offers top-of-the-line equipment from trusted manufacturers.

• Flexible Rental Periods: Customers can choose from both short- and long-term rental options based on their specific project requirements. This flexibility allows customers to optimize their costs and avoid overpaying for equipment they only need temporarily.
• Competitive Pricing and Financing Options: Herc Holdings Inc. offers competitive pricing for its rental equipment, ensuring that customers receive great value for their money. Additionally, the company provides various financing options to make equipment rentals more accessible and affordable for customers with different budget constraints.
• Comprehensive Maintenance and Support Services: In addition to offering high-quality rental equipment, Herc Holdings Inc. also provides comprehensive maintenance and support services to ensure that customers can maximize the efficiency and performance of the rented equipment. This includes routine maintenance, repairs, and technical assistance whenever needed.

Customer Relationships

Herc Holdings Inc. (HRI) places a strong emphasis on maintaining positive relationships with its customers through various channels:

• Personal Assistance: Customers have access to dedicated account managers who provide personalized support and assistance. These account managers are trained to understand the specific needs and requirements of each customer, ensuring a high level of satisfaction.
• 24/7 Customer Support: HRI offers round-the-clock customer support services to address any inquiries or issues that may arise. This commitment to accessibility and responsiveness helps build trust and loyalty among customers.
• Online Self-Service Portals: In addition to personalized assistance, HRI provides customers with online self-service portals where they can easily access account information, make payments, and request equipment rentals. This convenient platform empowers customers to manage their accounts efficiently.
• Customer Training and Educational Resources: HRI offers training and educational resources to help customers maximize the value of their equipment rentals. From safety guidelines to equipment operation tutorials, these resources aim to enhance customers' overall experience and ensure the successful utilization of HRI's products.

Channels

Herc Holdings Inc. utilizes a variety of channels to reach customers and generate sales. These channels include:

• Physical branch locations: One of the primary channels for Herc Holdings is its network of physical branch locations. These locations serve as hubs for customers to visit in person, browse equipment offerings, and speak with knowledgeable staff members.
• Online booking platform: Herc Holdings also offers an online booking platform for customers to browse equipment, check availability, and make reservations. This digital channel provides convenience and accessibility for customers who prefer to research and book equipment online.
• Direct sales force: The company employs a direct sales force to reach out to potential customers, build relationships, and drive sales. This channel allows Herc Holdings to provide personalized service and tailored solutions to customers in various industries.
• Third-party dealers and distributors: In addition to its direct sales force, Herc Holdings partners with third-party dealers and distributors to expand its reach and serve customers in additional markets. These partners help distribute Herc Holdings' equipment and services to a broader customer base.

Customer Segments

Herc Holdings Inc.'s customer segments are diverse and cater to a wide range of industries and individuals. The following are the key customer segments that HRI targets:

• Construction companies: HRI provides equipment rental solutions to construction companies of all sizes. Whether it's heavy machinery, tools, or specialized equipment, HRI offers a wide range of options to meet the needs of construction projects.
• Industrial firms: Industrial firms often require specialized equipment and machinery for their operations. HRI serves this customer segment by providing quality equipment rentals that are essential for their day-to-day operations.
• Government and municipal entities: HRI caters to government agencies, municipalities, and public organizations that require equipment for infrastructure projects, maintenance, and other activities. By offering reliable equipment and excellent service, HRI has become a trusted partner for these entities.
• Event organizers: Event organizers often need equipment for setting up stages, lighting, sound systems, and other event essentials. HRI provides a wide range of equipment rentals to help make events successful and memorable.
• Individual and DIY renters: For individuals who need equipment for home improvement projects, landscaping, or other personal uses, HRI offers a convenient and cost-effective solution. With a variety of rental options available, HRI makes it easy for DIY renters to access the equipment they need.

Cost Structure

Acquisition and maintenance of equipment: Herc Holdings Inc. invests a significant amount of resources in acquiring and maintaining a fleet of equipment to rent out to customers. This includes trucks, trailers, construction equipment, and industrial machinery. The cost of purchasing this equipment, as well as ongoing maintenance, repairs, and replacement, are key components of the company's cost structure.

Operational costs of branches and facilities: In order to serve customers efficiently, Herc Holdings Inc. operates a network of branches and facilities across various locations. These sites incur costs related to utilities, rent, property taxes, insurance, and security. Additionally, the company must invest in technology and infrastructure to support its operations, such as inventory management systems and communication tools.

Salaries and wages of employees: Herc Holdings Inc. employs a large workforce to manage its operations, including sales representatives, equipment technicians, customer service agents, and administrative staff. The company must budget for salaries, wages, benefits, training, and development to attract and retain qualified employees who can deliver high-quality service to customers.

Marketing and promotional expenses: To attract new customers and retain existing ones, Herc Holdings Inc. allocates a portion of its budget to marketing and promotional activities. This includes advertising, branding, digital marketing, trade shows, sponsorships, and public relations efforts. The company may also invest in market research to identify new opportunities and trends in the equipment rental industry.

Revenue Streams

Herc Holdings Inc. generates revenue through a variety of streams that contribute to its profitability and growth. These revenue streams include:

• Income from equipment rentals: One of the primary sources of revenue for Herc Holdings Inc. is the rental of equipment to customers. Whether it is construction equipment, industrial machinery, or tools, clients can rent the required equipment for a specific period, generating income for the company.
• Sales of new and used equipment: Herc Holdings Inc. also generates revenue through the sale of both new and used equipment. By offering a range of equipment options for purchase, the company caters to customers who prefer to own assets rather than rent them.
• Revenue from maintenance and repair services: Herc Holdings Inc. provides maintenance and repair services for its equipment, generating revenue from these value-added services. By ensuring that their equipment is in optimal working condition, customers are more likely to return for future rentals and purchases.
• Fees from fleet management services: Additionally, Herc Holdings Inc. offers fleet management services to customers, which include monitoring, maintenance, and optimization of their equipment fleets. The company charges fees for these services, creating an additional revenue stream.

By tapping into these diverse revenue streams, Herc Holdings Inc. maintains a robust financial model that supports its continued success in the equipment rental industry.