Hertz, the renowned car rental company, is facing customer backlash over its decision to invest in AI technology. The new digital damage assessment system is unforgiving of any scratches found on returned vehicles.
The AI technology, developed by Israeli startup UVeye, is currently in use at Atlanta International Airport and will soon be rolled out to other locations across the US.
When customers return rental cars, the vehicles are driven through a tunnel equipped with scanners to record any damage. If the system detects damage not present during the initial inspection, customers are immediately billed for repairs.
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A dent detected by the AI scanner when a customer returned the car. Photo: professor pimpcain |
A dent detected by the AI scanner when a customer returned the car. Photo: professor pimpcain
One Reddit user shared their negative experience with the AI system. The scanner detected a tiny dent on the right front fender, and a 195 USD bill promptly appeared on the customer's smartphone app.
This user claimed to have been a Hertz customer for years but plans to switch to a different company. "I'm done with Hertz. Contacted customer service and they said they stand by the AI. There are too many other car rental options to deal with a company that pulls this kind of nonsense, even though I used to like them," the user wrote.
The customer's dissatisfaction seems to stem not from the detection of damage itself, but rather from the fact that the dent was so minor that a human assessor might have overlooked it or dismissed it as normal wear and tear.
Some car rental companies often disregard damage smaller than a dime, but Hertz's UVeye application operates on a binary system. Drive previously reported another incident where a driver was charged 440 USD for a scratched wheel rim, including 250 USD for the repair, 125 USD for processing, and another 65 USD to cover administrative fees.
Hertz's AI-powered scanning system for rental cars. Video: Hertz
When asked about the new technology, a Hertz representative issued the following statement: "The vast majority of our rentals are returned without incident. When damage does occur, our goal is to improve the rental experience by bringing greater transparency, accuracy and speed to the process. Digital vehicle inspections help us to do that with clear, detailed documentation provided more quickly, as well as a more technology-enabled resolution process."
While some commenters on the 195 USD dent thread couldn't understand why the original poster felt wronged, arguing that they should be held responsible for any damage during the rental period, others were shocked and said they would think twice before renting from Hertz again.
"What's next? Charges for sun damage to the paint from being outdoors?" one person asked. "Maybe the AI can measure brake pad wear or oil burned and charge for that too," another wrote.
Carscoops commented that the technology—which Hertz hopes will help cut its significant losses in 2024—will likely become standard across much of the industry. But rental companies may need to adjust their damage thresholds if they don't want to lose customers.
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