The University of Iowa will change its vehicle rental operations from in-house Fleet Services to a contract with Hertz Car Rentals beginning March 16.
The transition will occur in phases; reservations placed through Fleet Services will continue through March 16. Hertz will honor all rentals for the next two weeks, and by April 1, all local rentals will be handled by Hertz. If you have an existing rental after March 31, renters will need to rebook through Hertz.
Fleet Services is a division within the UI’s parking and transportation department. The service manages and maintains vehicles that are rented to university organizations. This includes the management of leases.
On June 25, 2025, Fleet Services was moved to the west campus across from the Hawkeye Tennis and Recreation Complex. Fleet Services cited this as a temporary relocation due to construction on the Cambus Maintenance Facility.
This changed the fueling process; renters were tasked with fueling vehicles because the facility no longer had access to on-site gas pumps.
The process of renting from the UI has changed again.
Debby Zumbach, associate vice president of Finance and Operations and director of Parking and Transportation and Business Services, said the agreement will last five years, and renewal will be decided toward the end of the contract.
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Zumbach said the decision followed projected cost increases, including $500,000 in higher vehicle prices and a planned $1 million addition to house Fleet Services offices at the Cambus maintenance facility.
To explore more cost-effective options, the university issued a request for proposals, a competitive bidding process in which vendors submit pricing and service plans. An evaluation team made up of Fleet Services and university employees reviewed the submissions and selected a bidder using a point-based scoring system, Zumbach said.
Not including the money needed for vehicles and the addition to the Cambus Maintenance Facility, Fleet Services will save 250,000 dollars by contracting with Hertz, Zumbach said.
Interim Fleet Services Manager Kris Halter said the agreement will last five years, and renewal will be decided toward the end of the contract. All leasing agreements and vehicle rentals will be handled by Hertz.
“This came about by just trying to do due diligence originally with what we offered, versus what’s offered out in the industry,” Halter said.
Under the new agreement, insurance and roadside assistance will continue to be included in rentals, Halter said. University-approved student drivers may continue operating vehicles for official university business without paying the rental fee for being under 25 years oldtypically charged by Hertz and other rental companies.
He said the contract eliminates mileage fees, allowing unlimited mileage for renters. Hertz will also offer free pickup and delivery within 10 miles of campus, a service not previously available through Fleet Services.
Fleet Services previously charged $54.87 per day for a midsize sedan. Under the new contract with Hertz, the daily rate will drop to $38.50.
Pickup locations will shift from Fleet Services West near the health care campus to the Hertz location on Riverside Drive, Halter said.
For departments that regularly coordinate travel, the change introduces logistical adjustments.
Administrative services coordinator for the UI School of Journalism and Mass Communication, Erin Goss, said she rents vehicles about a dozen times each year for field trips, conferences, and the Iowa Summer Journalism Workshop.
Goss said she first learned about the transition when a previously approved reservation was canceled and redirected to Hertz.
She said Hertz now provides a dedicated booking page for university employees. While she expects the platform to be manageable, she said the transition has created uncertainty.
“It’s leaving a lot in the air right now,” Goss said.
Fueling procedures are among her concerns. Under Fleet Services, departments used a Fleet fuel card. With Hertz, Goss said it is unclear whether departments will use purchasing cards or rely on reimbursement processes. She said she is also unsure how the transition may affect student organizations that rely on university vehicle access.
Halter said two Fleet Services employees affected by the change will move into existing open positions within Business Services. Zumbach clarified that the positions were already vacant.
The university has contacted customers with reservations extending beyond March 31 to help ensure business operations are not disrupted, Halter said.
As the transition date nears, university officials say the agreement is meant to improve rental services while campus users adjust to the new process.