Avis and Alphabet will team up on self-driving cars — and Avis shares are soaring – CNBC

Posted: Monday, June 26, 2017

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A Waymo self-driving car.

Alphabet and Avis Budget will work together on self-driving cars, the companies announced on Monday.

Alphabet’s self-driving car company, Waymo, will rely on Avis to service and store its fleet of Chrysler self-driving vans, the companies said in a statement. Most of the 600 vehicles will be deployed, in part to support a pilot in Phoenix, Arizona.

Shares of Avis bounced more than 18 percent immediately after the news, and were up more than 12.5 percent mid-morning. Avis competitor Hertz also saw shares spike more than 7 percent.

Avis will provide services like secure parking, cleaning, oil changes and tire rotations at is locations as part of the agreement.

The tie-up comes as Waymo and Uber fight in court over self-driving car technology. Uber’s ride-hailing service is also a rival of Avis, especially among business travelers, studies show.

— With reporting by CNBC’s Deirdre Bosa

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