Intense Competition and Market Disruption: The car rental industry is highly competitive with traditional rivals and new entrants from ride-sharing and car-sharing platforms, challenging Hertz's market share and pricing power.

Fleet Acquisition and Residual Value Risks: Hertz faces significant costs and risks associated with purchasing, maintaining, and ultimately selling its fleet, including potential declines in vehicle residual values, especially for electric vehicles (EVs).

Economic Downturns and Travel Demand Volatility: Demand for rental cars is highly sensitive to economic conditions, business travel, and tourism trends, making Hertz vulnerable to recessions or reductions in travel.