1 00:00:01,917 --> 00:00:04,000 [dramatic music] 2 00:00:04,083 --> 00:00:05,958 - [Narrator] Today, nearly 600 million people 3 00:00:06,042 --> 00:00:09,125 around the globe rent a car every year. 4 00:00:09,208 --> 00:00:12,458 - We can go to any city virtually all over the world 5 00:00:12,542 --> 00:00:15,375 and walk out the airport, and we can rent a car. 6 00:00:15,458 --> 00:00:18,250 - A rental car is really like having a key to the city. 7 00:00:19,417 --> 00:00:20,917 - [Narrator] And the leading rental companies 8 00:00:21,000 --> 00:00:23,000 have become household names. 9 00:00:23,083 --> 00:00:25,458 - Green is Enterprise, red's gonna be Avis, 10 00:00:25,542 --> 00:00:28,167 yellow's gonna be Hertz, blue's gonna be Dollar. 11 00:00:28,333 --> 00:00:31,250 There's something we assume will be there 12 00:00:31,333 --> 00:00:33,542 when we land, like our luggage. 13 00:00:35,208 --> 00:00:36,875 - [Narrator] But only a century ago, 14 00:00:36,958 --> 00:00:39,625 the entire industry didn't exist. 15 00:00:39,708 --> 00:00:41,250 - At this point in time, 16 00:00:41,375 --> 00:00:45,000 less than four out of every 50 people actually own a car. 17 00:00:45,083 --> 00:00:46,500 [tense music] 18 00:00:46,583 --> 00:00:48,875 - [Narrator] Until a struggling car salesman... 19 00:00:49,000 --> 00:00:50,167 - How can I help you? 20 00:00:50,250 --> 00:00:51,875 - [Narrator] Meets a taxi cab tycoon. 21 00:00:52,000 --> 00:00:53,083 - John Hertz. 22 00:00:53,667 --> 00:00:54,875 - [Narrator] Who join forces 23 00:00:55,000 --> 00:00:57,250 to change the rules of the road. 24 00:00:57,333 --> 00:00:59,875 - People were rolling in the door to drive a car 25 00:00:59,958 --> 00:01:02,500 for the first time or to take short trips. 26 00:01:02,542 --> 00:01:05,583 - By making it easy, by making it accessible, 27 00:01:05,667 --> 00:01:08,542 they started a rental car revolution. 28 00:01:08,667 --> 00:01:11,708 Hertz was ready to grow and take across the world. 29 00:01:13,458 --> 00:01:15,500 - [Narrator] But when a World War II veteran sees a hole 30 00:01:15,583 --> 00:01:19,417 in the market... - Here are the keys, Mr. Avis. 31 00:01:20,417 --> 00:01:22,958 - [Narrator] A cutthroat rivalry revs up. 32 00:01:23,042 --> 00:01:24,375 - Avis has this genius idea 33 00:01:24,375 --> 00:01:26,375 that Hertz hasn't yet figured out. 34 00:01:26,458 --> 00:01:30,250 - Hertz was a company built during the automotive age, 35 00:01:30,333 --> 00:01:33,125 but Avis was about catering to the jet age. 36 00:01:33,208 --> 00:01:36,000 - So much of Hertz's market share was being eroded 37 00:01:36,083 --> 00:01:38,583 by this upstart that quickly became number two. 38 00:01:40,833 --> 00:01:43,792 - Find out every airport Avis is in and every one he isn't. 39 00:01:43,875 --> 00:01:45,292 - This was unheard of. 40 00:01:45,375 --> 00:01:46,875 - They mention Hertz, pretend you didn't hear it. 41 00:01:46,958 --> 00:01:48,167 Just keep talking. 42 00:01:48,333 --> 00:01:50,333 - Now he has competition 43 00:01:50,417 --> 00:01:53,833 that is somehow beating him at the game he created. 44 00:01:53,875 --> 00:01:57,458 - [Narrator] In the end, only one can come out on top. 45 00:01:57,542 --> 00:02:00,375 - The competition, the rivalry, the innovations 46 00:02:00,458 --> 00:02:01,500 that came out of these two companies 47 00:02:01,583 --> 00:02:04,083 led to this now $100 billion industry 48 00:02:04,208 --> 00:02:06,417 that we have for car rentals. 49 00:02:06,542 --> 00:02:08,333 [engine rumbles] 50 00:02:08,417 --> 00:02:12,708 [intense pounding] [dramatic music] 51 00:02:29,167 --> 00:02:32,333 [tense music] 52 00:02:32,375 --> 00:02:34,875 - [Narrator] In 1918, an ambitious entrepreneur 53 00:02:34,958 --> 00:02:36,625 from the south side of Chicago, 54 00:02:36,708 --> 00:02:41,583 Walter Jacobs, is running his own Model T Ford dealership. 55 00:02:42,583 --> 00:02:43,833 - He's much more than a car salesman. 56 00:02:43,917 --> 00:02:45,167 He started out as an auto worker 57 00:02:45,250 --> 00:02:46,708 and worked on the assembly line 58 00:02:46,792 --> 00:02:49,167 at Ford's plant before going into sales. 59 00:02:49,250 --> 00:02:51,167 - He liked tinkering with the engines. 60 00:02:51,292 --> 00:02:54,417 He loved everything about the vehicle. 61 00:02:54,500 --> 00:02:57,167 You could really say he was an early car junkie. 62 00:02:57,250 --> 00:03:00,167 He really saw, this is the future. 63 00:03:00,250 --> 00:03:02,333 - [Narrator] But after some initial success, 64 00:03:02,417 --> 00:03:06,208 sales at his dealership have come to a screeching halt. 65 00:03:06,292 --> 00:03:09,000 - Cars were generally prohibitively expensive, 66 00:03:09,083 --> 00:03:12,083 were only owned by the ultra rich, 67 00:03:12,167 --> 00:03:14,625 and most Americans didn't drive in them, 68 00:03:14,708 --> 00:03:16,333 know how to drive them. 69 00:03:16,375 --> 00:03:17,917 - It's just like any new technology. 70 00:03:18,000 --> 00:03:19,750 Initially, everyone's super excited. 71 00:03:19,833 --> 00:03:22,167 Those that can afford it, rush into it, 72 00:03:22,250 --> 00:03:23,833 but eventually, the hype dies out. 73 00:03:25,417 --> 00:03:26,667 - As a car salesman, 74 00:03:26,708 --> 00:03:28,667 Walter's job was to take people on test drives. 75 00:03:28,750 --> 00:03:31,167 - With more than 90% of Americans 76 00:03:31,208 --> 00:03:32,667 still not owning a car, 77 00:03:32,708 --> 00:03:35,333 getting behind the wheel of a car, test driving one, 78 00:03:35,417 --> 00:03:38,833 this was like a trip to the amusement park. 79 00:03:38,917 --> 00:03:40,542 - Driving is pretty risky. 80 00:03:40,708 --> 00:03:42,417 You don't have airbags, you don't have seat belts, 81 00:03:42,500 --> 00:03:45,500 it doesn't have many of the modern safety features, 82 00:03:45,625 --> 00:03:48,500 but also, you don't need a license to drive. 83 00:03:48,542 --> 00:03:52,208 - These people didn't, you know, know how to drive, 84 00:03:52,292 --> 00:03:56,333 but now you have this thing with a clutch 85 00:03:56,417 --> 00:03:58,417 and a throttle and three pedals, 86 00:03:58,500 --> 00:04:00,250 and it was sort of like 87 00:04:00,333 --> 00:04:03,917 a death-defying stunt extravaganza. 88 00:04:04,000 --> 00:04:05,625 [intense music] 89 00:04:05,625 --> 00:04:07,167 - Oh, geez. 90 00:04:07,292 --> 00:04:09,000 [door slams] 91 00:04:09,125 --> 00:04:11,875 Well, first one's always a doozy, right? 92 00:04:13,208 --> 00:04:14,417 Don't worry, you'll get the hang of it. 93 00:04:14,500 --> 00:04:16,042 [calm jaunty music] 94 00:04:16,167 --> 00:04:18,833 - These were people mostly who had never driven a car before 95 00:04:18,875 --> 00:04:21,625 who wanted to see the magic of a brand new car. 96 00:04:23,042 --> 00:04:25,583 - So how about we step inside, finish up some paperwork, 97 00:04:25,708 --> 00:04:28,500 and get you driving outta here in no time? 98 00:04:28,625 --> 00:04:31,417 - Any chance I could come back tomorrow for another drive? 99 00:04:31,542 --> 00:04:33,708 My girlfriend would get a kick outta this thing. 100 00:04:33,833 --> 00:04:37,042 - Well, I mean, you could buy this car right now. 101 00:04:37,125 --> 00:04:38,792 You don't have to wait till tomorrow. 102 00:04:38,875 --> 00:04:41,458 [tense music] 103 00:04:45,042 --> 00:04:46,375 - I need to think about it. 104 00:04:47,625 --> 00:04:50,167 - All these people are interested in these cars, 105 00:04:50,208 --> 00:04:52,917 but yet they're not ready to buy them. 106 00:04:54,375 --> 00:04:56,875 - You're not interested in buying a car, are you? 107 00:04:57,000 --> 00:04:59,583 [intense music] 108 00:05:01,083 --> 00:05:02,667 - [Customer] Could I still come back for another test drive? 109 00:05:02,750 --> 00:05:04,542 - This isn't a carnival ride. 110 00:05:07,292 --> 00:05:08,625 - I'll pay. 111 00:05:09,542 --> 00:05:12,250 [dramatic suspenseful music] 112 00:05:12,333 --> 00:05:13,625 How much do you want? 113 00:05:17,792 --> 00:05:20,208 - Jacobs realized that a lot of people 114 00:05:20,292 --> 00:05:21,542 wanna drive a car, 115 00:05:21,625 --> 00:05:23,500 but they don't need to invest in owning a car, 116 00:05:23,625 --> 00:05:26,042 because people don't need a car every day. 117 00:05:27,542 --> 00:05:30,500 - He sees how romanticized they are for the cars. 118 00:05:30,583 --> 00:05:33,292 He's seen the love affair that's taking place 119 00:05:33,375 --> 00:05:35,458 on that dealership lot. 120 00:05:35,542 --> 00:05:37,500 He sees how much they want to touch them, 121 00:05:37,583 --> 00:05:39,750 feel them, experience them. 122 00:05:40,833 --> 00:05:42,542 [intense music] 123 00:05:42,625 --> 00:05:44,708 - So he comes up with an idea that, 124 00:05:44,792 --> 00:05:46,500 what if we allow people to rent cars 125 00:05:46,583 --> 00:05:48,500 to satisfy that curiosity 126 00:05:48,583 --> 00:05:51,292 without making them make the major financial investment 127 00:05:51,375 --> 00:05:52,625 of owning a car? 128 00:05:52,708 --> 00:05:54,875 - He's the son of a traveling salesman 129 00:05:54,958 --> 00:05:58,792 and he would see his dad rent a horse and buggy 130 00:05:58,875 --> 00:06:01,125 to make his sales calls. 131 00:06:01,208 --> 00:06:02,917 - If he rents cars by the day 132 00:06:03,000 --> 00:06:05,792 just like his dad did with a horse and buggy, 133 00:06:05,875 --> 00:06:08,500 he could open up a new market of new customers 134 00:06:08,542 --> 00:06:10,542 who didn't think they could afford a car, 135 00:06:10,625 --> 00:06:12,458 and he might make more money 136 00:06:12,542 --> 00:06:15,167 than if he sold them in the first place. 137 00:06:15,250 --> 00:06:16,500 - [Narrator] Jacobs' groundbreaking idea 138 00:06:16,583 --> 00:06:20,417 is the catalyst for a new modern convenience 139 00:06:20,500 --> 00:06:22,958 people everywhere will learn to rely upon 140 00:06:24,458 --> 00:06:28,417 and what will become a $120 billion global market. 141 00:06:30,208 --> 00:06:32,500 But for now, he'll need to convince people 142 00:06:32,583 --> 00:06:34,667 to do something completely new, 143 00:06:34,792 --> 00:06:36,958 rent cars instead of buying them. 144 00:06:38,667 --> 00:06:43,375 - So in 1918, Walter Jacobs takes his entire life savings 145 00:06:43,500 --> 00:06:48,167 plus $2,500 that he borrowed from friends and family, 146 00:06:48,292 --> 00:06:50,500 and he basically converts the dealership 147 00:06:50,542 --> 00:06:52,125 into a rental office. 148 00:06:53,375 --> 00:06:55,000 - Rent-a-Ford, how can I help you? 149 00:06:55,792 --> 00:06:57,542 - Walter Jacobs' family thinks, 150 00:06:57,625 --> 00:06:59,667 well, that's a little bit crazy. 151 00:06:59,708 --> 00:07:01,625 Rent a car? I don't see it. 152 00:07:01,708 --> 00:07:03,000 - They were worried that the customers 153 00:07:03,125 --> 00:07:05,125 would wreck the cars or never return them. 154 00:07:05,208 --> 00:07:07,000 Yet he takes that risk. 155 00:07:07,083 --> 00:07:10,000 - He didn't just grab a couple cars and see how it went. 156 00:07:10,042 --> 00:07:13,667 He so believed in this concept that he went all in 157 00:07:13,792 --> 00:07:17,000 for a fleet of 12 black Model T Fords. 158 00:07:17,042 --> 00:07:22,083 That's the modern day equivalent of a $300,000 spend 159 00:07:23,708 --> 00:07:25,833 to try a business model that had never been heard of before. 160 00:07:25,875 --> 00:07:28,417 - Sure, sure, when are you looking to rent it? 161 00:07:29,708 --> 00:07:32,000 And by the hour or the full day? 162 00:07:32,125 --> 00:07:34,542 - He charges 20 cents for each mile driven 163 00:07:34,542 --> 00:07:38,167 with a minimum for a dollar for an hourly rental. 164 00:07:38,250 --> 00:07:39,958 - It's $10 a day. 165 00:07:40,042 --> 00:07:41,417 - For an extra fee, 166 00:07:41,417 --> 00:07:43,750 he would let you rent a self-starting car 167 00:07:43,875 --> 00:07:46,000 versus one that required to crank start. 168 00:07:46,042 --> 00:07:48,833 So he was already trying to get the upsell 169 00:07:48,917 --> 00:07:52,542 out of the customer in the early days of rental cars. 170 00:07:52,625 --> 00:07:54,708 - [Narrator] But only a few months after opening, 171 00:07:54,792 --> 00:07:57,708 Jacobs is off to a slow start. 172 00:07:57,792 --> 00:08:00,958 - Rental cars never existed anywhere else 173 00:08:00,958 --> 00:08:02,333 other than with him. 174 00:08:02,417 --> 00:08:04,250 So he had to actually educate the consumer 175 00:08:04,375 --> 00:08:06,250 as to what he was doing. 176 00:08:06,333 --> 00:08:09,708 - No, I won't be driving the car for you. 177 00:08:09,792 --> 00:08:12,542 You drive the car yourself. 178 00:08:12,667 --> 00:08:14,750 - It wasn't clear enough that the car didn't come 179 00:08:14,833 --> 00:08:17,000 with a driver who was gonna drive you around. 180 00:08:17,083 --> 00:08:18,417 You had to drive yourself. 181 00:08:18,417 --> 00:08:19,458 - Hello? 182 00:08:19,542 --> 00:08:21,125 Hello? Are you there? 183 00:08:22,375 --> 00:08:24,250 - But he refuses to give up. 184 00:08:24,375 --> 00:08:26,500 He believed in this vision so strongly 185 00:08:26,583 --> 00:08:28,833 that this is something the American public will want. 186 00:08:28,875 --> 00:08:32,042 - [Narrator] Jacobs even gives his business a clearer name, 187 00:08:32,167 --> 00:08:34,750 Drivurself, and he doubles down 188 00:08:34,833 --> 00:08:37,250 on an all-out marketing blitz. 189 00:08:37,333 --> 00:08:40,833 - This guy was doing everything he could, outdoor posters, 190 00:08:40,833 --> 00:08:43,667 classified ads in the telephone book, 191 00:08:43,792 --> 00:08:46,792 full page ads in the Chicago Tribune. 192 00:08:46,875 --> 00:08:49,000 - He decided, I have these rental cars 193 00:08:49,042 --> 00:08:50,542 driving around Chicago, 194 00:08:50,667 --> 00:08:52,667 I'll make it a traveling billboard. 195 00:08:52,750 --> 00:08:56,375 So he takes an open-air car, puts a billboard on it, 196 00:08:56,500 --> 00:08:58,458 drives it all over Chicago. 197 00:08:58,458 --> 00:09:00,083 Rent a car. 198 00:09:00,167 --> 00:09:02,500 - [Narrator] Soon, Jacobs' relentless pursuit 199 00:09:02,542 --> 00:09:04,042 starts to pay off. 200 00:09:05,625 --> 00:09:08,333 [upbeat rock music] 201 00:09:08,333 --> 00:09:10,000 - It really began to grow and take off 202 00:09:10,125 --> 00:09:13,667 because so many Americans wanted this experience. 203 00:09:13,792 --> 00:09:15,542 - People were rolling in the door 204 00:09:15,708 --> 00:09:19,542 to drive a car for the first time or to take short trips. 205 00:09:19,667 --> 00:09:20,792 - Within just eight months, 206 00:09:20,875 --> 00:09:22,875 Jacobs' business was growing pretty fast. 207 00:09:22,958 --> 00:09:24,625 In fact, he even doubled the number 208 00:09:24,708 --> 00:09:27,625 of Model T cars he had from 12 to over 30. 209 00:09:29,167 --> 00:09:30,083 - [Narrator] But now 210 00:09:30,208 --> 00:09:32,417 he's struggling to keep up with demand. 211 00:09:32,542 --> 00:09:35,375 - Walter Jacobs is a one-person band, 212 00:09:35,500 --> 00:09:37,375 if you will, in his rent-a-car business. 213 00:09:37,458 --> 00:09:39,125 He's renting cars at the counter. 214 00:09:39,208 --> 00:09:41,500 He's acting as a mechanic, repairing them. 215 00:09:41,500 --> 00:09:42,958 He's even washing them. 216 00:09:43,042 --> 00:09:45,833 He's doing it all, and the business is growing so fast, 217 00:09:45,958 --> 00:09:47,667 he's losing his mind, like, 218 00:09:47,750 --> 00:09:50,333 how am I going to keep up with this? 219 00:09:50,417 --> 00:09:53,167 [intense music] 220 00:09:54,500 --> 00:09:55,875 - [Narrator] Over the next five years, 221 00:09:56,000 --> 00:09:59,542 Jacobs' rising success gains notice. 222 00:09:59,667 --> 00:10:00,542 [intense music] 223 00:10:00,625 --> 00:10:01,875 - Jacobs catches the attention 224 00:10:01,958 --> 00:10:04,167 of one of Chicago's most powerful businessmen. 225 00:10:05,667 --> 00:10:08,167 - He had an extremely modest upbringing. 226 00:10:08,333 --> 00:10:11,292 He was from a Jewish community in Eastern Europe 227 00:10:11,375 --> 00:10:14,833 that immigrated to America and settled in Chicago. 228 00:10:14,875 --> 00:10:17,708 - He eventually becomes this young man, a car salesman, 229 00:10:17,792 --> 00:10:21,083 and he sees a world of opportunity. 230 00:10:22,333 --> 00:10:25,333 - [Narrator] Now he owns the largest taxi cab company 231 00:10:25,417 --> 00:10:26,667 in the world. 232 00:10:26,792 --> 00:10:29,667 - He'd seen a study that yellow with a tinge of red 233 00:10:29,750 --> 00:10:32,000 was the most visible at a long distance, 234 00:10:32,083 --> 00:10:35,250 so he paints his taxi cabs yellow. 235 00:10:35,333 --> 00:10:38,500 You see those yellow taxis in the US, all over the world? 236 00:10:38,583 --> 00:10:42,042 He's the one who came up with that concept. 237 00:10:42,125 --> 00:10:45,333 - His yellow cab business is so incredibly successful, 238 00:10:45,375 --> 00:10:46,625 in a couple of years, 239 00:10:46,708 --> 00:10:48,333 he's bringing in the modern equivalent 240 00:10:48,458 --> 00:10:51,875 of $4.5 million annually. 241 00:10:51,958 --> 00:10:53,458 - But there's a problem. 242 00:10:53,542 --> 00:10:55,833 The taxi business is cutthroat. 243 00:10:55,875 --> 00:10:58,667 People are dying, there's labor issues, 244 00:10:58,750 --> 00:11:00,500 and here's this rent-a-car business. 245 00:11:00,583 --> 00:11:03,333 You rent a car, the renter drives it off. 246 00:11:03,458 --> 00:11:05,667 You don't have to pay a driver. 247 00:11:05,708 --> 00:11:07,667 - He saw what Jacobs was doing and thought, 248 00:11:07,708 --> 00:11:10,000 I need to be in the car rental game. 249 00:11:11,042 --> 00:11:11,958 [dramatic suspenseful music] 250 00:11:12,042 --> 00:11:13,375 - [Narrator] The man's name 251 00:11:15,542 --> 00:11:17,375 is John D. Hertz. 252 00:11:17,458 --> 00:11:20,875 [intense dramatic music] 253 00:11:26,042 --> 00:11:27,917 [intense music] 254 00:11:28,000 --> 00:11:29,875 - [Narrator] In Chicago, the owner of the city's 255 00:11:29,875 --> 00:11:31,292 biggest cab company, 256 00:11:31,417 --> 00:11:34,167 John D. Hertz, finds himself at a major turning point. 257 00:11:35,833 --> 00:11:37,583 - Tensions between the taxi drivers 258 00:11:37,667 --> 00:11:39,917 of Hertz's Yellow Cab Company and its rival, 259 00:11:40,000 --> 00:11:43,000 the Checker Cab Company, have been brewing for years, 260 00:11:43,083 --> 00:11:45,500 and now, they're spilling out in violence 261 00:11:45,542 --> 00:11:46,917 in the streets of Chicago. 262 00:11:48,292 --> 00:11:49,667 - [Narrator] With the future of the taxi industry 263 00:11:49,750 --> 00:11:51,167 suddenly in flux... 264 00:11:51,250 --> 00:11:53,625 - And how long will you be needing it for? 265 00:11:53,708 --> 00:11:58,000 - [Narrator] Hertz figures out another way to hedge his bets. 266 00:11:58,083 --> 00:12:00,792 [dramatic music] 267 00:12:02,083 --> 00:12:04,458 - All right, we'll see you then. 268 00:12:04,542 --> 00:12:05,833 I'm sorry about that. 269 00:12:06,667 --> 00:12:07,667 How can I help you? 270 00:12:08,500 --> 00:12:10,583 - How many vehicles do you own? 271 00:12:10,667 --> 00:12:12,417 - Oh, we've got plenty to choose from. 272 00:12:12,500 --> 00:12:15,208 - Walter Jacobs was having incredible success 273 00:12:15,292 --> 00:12:17,667 with his rental car company, but it was growing so fast, 274 00:12:17,750 --> 00:12:19,708 it was almost more than he could manage. 275 00:12:19,792 --> 00:12:21,417 - And you charge 10 bucks a day? 276 00:12:21,500 --> 00:12:24,292 - That's right. The first 100 miles are included. 277 00:12:24,375 --> 00:12:28,208 - Annual revenues must be, what, 100,000, two? 278 00:12:29,500 --> 00:12:33,333 - Sir, are you interested in renting a car today? 279 00:12:33,417 --> 00:12:35,167 - No, not really. 280 00:12:35,250 --> 00:12:38,000 I'm interested in buying the business. 281 00:12:39,333 --> 00:12:40,083 John Hertz. 282 00:12:41,000 --> 00:12:43,125 - As in the Yellow Cab Company? 283 00:12:43,208 --> 00:12:46,125 - You have a nice operation here, 284 00:12:46,208 --> 00:12:48,750 but you're only based in Chicago? 285 00:12:48,833 --> 00:12:50,958 You should be doing this nationwide. 286 00:12:51,042 --> 00:12:52,917 - Hertz has the experience 287 00:12:53,042 --> 00:12:55,417 of replicating the Yellow Cab model in other cities already, 288 00:12:55,542 --> 00:12:56,833 like New York and Philadelphia, 289 00:12:56,917 --> 00:12:58,667 and he wants to do the same thing 290 00:12:58,708 --> 00:13:00,500 with Jacobs' rental car business. 291 00:13:00,625 --> 00:13:03,375 - [Narrator] But Jacobs doesn't jump at the opportunity. 292 00:13:05,208 --> 00:13:06,292 - Name your price. 293 00:13:07,833 --> 00:13:10,333 [tense music] 294 00:13:10,417 --> 00:13:11,500 - It is not about the money. 295 00:13:13,083 --> 00:13:15,750 - Had Hertz wanted to, he could've steamrolled Jacobs, 296 00:13:16,708 --> 00:13:17,917 but he didn't. 297 00:13:18,792 --> 00:13:21,000 Hertz sees a lot of himself in Jacobs, 298 00:13:21,083 --> 00:13:25,167 this young, fiery entrepreneur, that never-quit attitude. 299 00:13:26,542 --> 00:13:28,000 - John D. Hertz makes a deal 300 00:13:28,083 --> 00:13:30,833 to buy Walter Jacobs' rent-a-car company, 301 00:13:30,917 --> 00:13:33,750 and it becomes the Hertz Driv-Ur-Self 302 00:13:33,833 --> 00:13:35,583 rental car company. 303 00:13:35,708 --> 00:13:39,583 - [Narrator] But Jacobs isn't ready to walk away just yet. 304 00:13:39,708 --> 00:13:42,708 - Walter Jacobs didn't sell his company and say, bye bye. 305 00:13:42,833 --> 00:13:45,042 He's like, oh, I'd like to be a part of this, 306 00:13:45,208 --> 00:13:48,208 so he joins the company serving as its president 307 00:13:48,292 --> 00:13:51,167 and John D. Hertz's right-hand person. 308 00:13:51,208 --> 00:13:53,042 - Hertz not only gave the business his name 309 00:13:53,167 --> 00:13:56,667 but also the familiar colors of his Yellow Cab Company. 310 00:13:56,750 --> 00:13:59,667 - Suddenly, there's this identifying brand 311 00:13:59,750 --> 00:14:02,208 that American consumers can relate to. 312 00:14:03,708 --> 00:14:05,125 - [Narrator] With a goal to expand 313 00:14:05,208 --> 00:14:08,167 and become the first national rental car company, 314 00:14:08,167 --> 00:14:11,792 Hertz implements a novel strategy at the time, 315 00:14:11,875 --> 00:14:13,042 franchising. 316 00:14:13,125 --> 00:14:15,208 - Hertz piloted franchising 317 00:14:15,292 --> 00:14:18,042 before fast food restaurants or gyms did, 318 00:14:18,125 --> 00:14:19,542 and the model that they used 319 00:14:19,625 --> 00:14:21,208 was called the conversion model. 320 00:14:21,333 --> 00:14:23,375 The conversion model idea actually came 321 00:14:23,458 --> 00:14:24,833 from the oil industry 322 00:14:24,917 --> 00:14:27,250 where they would give independent repair shops 323 00:14:27,333 --> 00:14:30,000 the authorization to use their brand. 324 00:14:30,042 --> 00:14:32,375 - Hertz saw this and became the first car rental business 325 00:14:32,458 --> 00:14:33,583 to follow a similar model. 326 00:14:35,208 --> 00:14:37,417 - [Narrator] Hertz starts by targeting the growing number 327 00:14:37,500 --> 00:14:41,417 of independent rental shops popping up across the US. 328 00:14:41,500 --> 00:14:45,000 - They knew to grow fast, they couldn't do it themselves. 329 00:14:45,042 --> 00:14:47,167 So they reached out across the country 330 00:14:47,208 --> 00:14:49,708 and found a network of mom and pop owners 331 00:14:49,833 --> 00:14:51,167 to become franchisees, 332 00:14:51,250 --> 00:14:54,333 to fly the Hertz flag and help them grow fast. 333 00:14:54,458 --> 00:14:57,917 - Basically existing businesses would convert 334 00:14:57,917 --> 00:14:59,583 into a Hertz business, 335 00:14:59,667 --> 00:15:01,917 and they would get to have that familiar branding 336 00:15:01,917 --> 00:15:04,125 that would allow someone who was on the road 337 00:15:04,208 --> 00:15:07,000 to know that they would get Hertz service. 338 00:15:07,083 --> 00:15:09,875 - The brilliance of Hertz's maneuver here 339 00:15:09,958 --> 00:15:12,417 is that he eliminates the competition 340 00:15:12,542 --> 00:15:14,000 and grows his brand 341 00:15:14,042 --> 00:15:16,125 at the same time. 342 00:15:17,583 --> 00:15:21,292 - By 1925, they were the first to go coast to coast 343 00:15:21,292 --> 00:15:23,250 with a true rental car network. 344 00:15:23,375 --> 00:15:27,250 Soon they're in more than 1,000 locations across America. 345 00:15:29,917 --> 00:15:32,208 - [Narrator] But while the rental business booms, 346 00:15:32,292 --> 00:15:34,833 Hertz' other enterprise is suffering. 347 00:15:34,917 --> 00:15:36,167 - All of a sudden, 348 00:15:36,250 --> 00:15:39,500 the Chicago taxi wars were quite dangerous 349 00:15:39,625 --> 00:15:41,500 for John and his family. 350 00:15:41,625 --> 00:15:44,250 Two of his yellow cab garages get bombed. 351 00:15:44,375 --> 00:15:48,375 31 of his horses die in a terrible arson blaze. 352 00:15:48,458 --> 00:15:51,292 Someone even threatens to kidnap his grandchild. 353 00:15:52,417 --> 00:15:54,833 - It's nearly noon. Where you been? 354 00:15:54,917 --> 00:15:57,917 - I had a meeting with General Motors. 355 00:15:59,333 --> 00:16:01,542 - John Hertz realizes it's time 356 00:16:01,625 --> 00:16:03,667 to move into another business. 357 00:16:03,750 --> 00:16:05,292 [intense music] 358 00:16:05,375 --> 00:16:06,833 - How much did they offer you? 359 00:16:06,958 --> 00:16:10,667 - 40 million plus a seat on the board. 360 00:16:10,750 --> 00:16:13,167 - Jacobs has no real control. 361 00:16:13,250 --> 00:16:14,333 He may have started the company, 362 00:16:14,417 --> 00:16:16,917 but at this point, he's basically an employee. 363 00:16:17,042 --> 00:16:18,542 - So what does this mean for me? 364 00:16:18,542 --> 00:16:20,458 - And every single thing that he's built 365 00:16:20,542 --> 00:16:24,667 is resting on this decision by John Hertz. 366 00:16:24,750 --> 00:16:27,458 [dramatic suspenseful music] 367 00:16:34,375 --> 00:16:37,208 - [Narrator] After only two years overseeing the expansion 368 00:16:37,292 --> 00:16:39,750 into the first national rental network, 369 00:16:39,875 --> 00:16:42,083 John D. Hertz cashes out. 370 00:16:43,042 --> 00:16:46,042 - So in 1925, John D. Hertz decides 371 00:16:46,125 --> 00:16:48,000 to sell both his yellow cab 372 00:16:48,042 --> 00:16:51,333 and his yellow truck manufacturing company 373 00:16:51,417 --> 00:16:55,333 to General Motors for about $40 million, 374 00:16:55,458 --> 00:16:59,208 and the rental car company becomes sort of swept up 375 00:16:59,292 --> 00:17:01,500 in part of that deal. 376 00:17:01,583 --> 00:17:03,083 - General Motors is trying 377 00:17:03,208 --> 00:17:06,583 to become the largest passenger car company in the world. 378 00:17:06,667 --> 00:17:08,167 They're chasing Ford, 379 00:17:08,250 --> 00:17:10,417 and they think Hertz is an opportunity 380 00:17:10,500 --> 00:17:12,667 for them to grow their car business. 381 00:17:12,750 --> 00:17:14,208 - The sale is great for Hertz, 382 00:17:14,292 --> 00:17:17,875 but it really overlooks the guy who built this company 383 00:17:17,958 --> 00:17:20,625 with his bare hands, Walter Jacobs. 384 00:17:22,208 --> 00:17:25,167 - Well, I talked 'em into keeping you on as president. 385 00:17:25,250 --> 00:17:27,583 Look at this as a good thing. 386 00:17:27,667 --> 00:17:29,625 You have GM money now. 387 00:17:30,833 --> 00:17:32,167 Use it. 388 00:17:32,250 --> 00:17:33,917 - He's now the head of this massive company, 389 00:17:34,000 --> 00:17:35,417 which is awesome, 390 00:17:35,542 --> 00:17:38,375 but now he has all this pressure on him to succeed, 391 00:17:38,500 --> 00:17:41,000 and the issue is he has a fraction 392 00:17:41,042 --> 00:17:42,875 of the business savvy that Hertz does, 393 00:17:42,875 --> 00:17:46,792 and he has to now prove he has what it takes to be the man, 394 00:17:46,875 --> 00:17:48,167 be the leader, 395 00:17:48,250 --> 00:17:50,500 and shepherd this company that was his brainchild. 396 00:17:52,375 --> 00:17:54,000 - [Narrator] With a huge network of locations 397 00:17:54,042 --> 00:17:55,667 to manage on his own, 398 00:17:55,667 --> 00:18:00,083 Jacobs works on creating a better system to connect them. 399 00:18:00,208 --> 00:18:01,625 - One thing Jacobs realized was that many 400 00:18:01,708 --> 00:18:03,583 of his customers complained about not being able 401 00:18:03,708 --> 00:18:06,708 to travel far distances without breaking the bank. 402 00:18:06,833 --> 00:18:09,333 Ever since Jacobs started his car rental business, 403 00:18:09,375 --> 00:18:12,208 all car services required customers 404 00:18:12,292 --> 00:18:15,042 to return the car back to where it came from. 405 00:18:15,958 --> 00:18:18,667 [intense music] 406 00:18:23,583 --> 00:18:26,583 - He thinks, we have this national network, 407 00:18:26,667 --> 00:18:29,500 but what if you could rent a car in one location, 408 00:18:29,542 --> 00:18:31,917 drive it all the way across America, 409 00:18:32,000 --> 00:18:34,000 drop it off, and leave it there? 410 00:18:34,125 --> 00:18:35,667 Bingo. 411 00:18:35,708 --> 00:18:39,708 - [Narrator] In 1933, Jacobs unleashes the first ever 412 00:18:39,708 --> 00:18:42,000 one-way rental option. 413 00:18:42,167 --> 00:18:44,500 - With the creation of one-way rentals, 414 00:18:44,583 --> 00:18:47,667 the degree of freedom that a rental car can give you 415 00:18:47,792 --> 00:18:50,500 is now exponentially increased. 416 00:18:50,583 --> 00:18:54,333 - The one-way rentals turned out to be a huge success. 417 00:18:54,458 --> 00:18:57,417 Jacobs' idea was a winner, and this was so important to him 418 00:18:57,500 --> 00:19:01,292 because he was finally out of the shadow of Hertz. 419 00:19:01,375 --> 00:19:03,500 - [Narrator] Meanwhile, over the past few years, 420 00:19:03,542 --> 00:19:04,667 the numbered highway system 421 00:19:04,750 --> 00:19:07,083 has been introduced across the country, 422 00:19:07,208 --> 00:19:10,250 making navigating new places much easier. 423 00:19:11,375 --> 00:19:13,042 - The more roads we started laying down, 424 00:19:13,125 --> 00:19:14,708 well, the more people were willing to travel. 425 00:19:14,833 --> 00:19:17,833 - We have these highway systems springing up in a new way 426 00:19:17,917 --> 00:19:20,792 so people can kind of travel across America in a way 427 00:19:20,875 --> 00:19:24,667 that was just impossible even a couple of decades earlier. 428 00:19:26,875 --> 00:19:28,292 [intense music] 429 00:19:28,375 --> 00:19:30,333 - [Narrator] There's also a surge in train travel, 430 00:19:31,583 --> 00:19:34,375 which gives Jacobs another revolutionary idea. 431 00:19:34,458 --> 00:19:36,167 - So Jacobs really subscribes 432 00:19:36,250 --> 00:19:39,500 to the entrepreneurial philosophy of innovate or die, 433 00:19:39,625 --> 00:19:41,750 and he came up with the rail drive system 434 00:19:41,833 --> 00:19:43,792 where he had rental cars waiting 435 00:19:43,875 --> 00:19:46,708 when you got off the train at the train station. 436 00:19:46,792 --> 00:19:49,333 - The fact that you could arrive at the train station 437 00:19:49,417 --> 00:19:51,958 and rent a car and be off to your destination 438 00:19:52,042 --> 00:19:52,917 was a game changer. 439 00:19:54,458 --> 00:19:56,250 - [Narrator] Thanks to the success of rail drive, 440 00:19:56,375 --> 00:19:59,500 Jacobs focuses on an even bigger conquest. 441 00:19:59,542 --> 00:20:01,875 - Hertz was easily number one in America 442 00:20:01,958 --> 00:20:03,375 as a rental car company, 443 00:20:03,458 --> 00:20:06,625 and they were ready to grow and take across the world. 444 00:20:06,708 --> 00:20:08,208 [dramatic music] 445 00:20:08,292 --> 00:20:12,208 - Elizabeth, can you get me detailed maps of Canada? 446 00:20:12,292 --> 00:20:16,167 Toronto, Vancouver, Montreal, all the major cities? 447 00:20:20,250 --> 00:20:23,208 - 1938, Hertz moves into Canada. 448 00:20:23,333 --> 00:20:24,875 - [Narrator] After becoming the first 449 00:20:24,958 --> 00:20:27,083 international car rental company, 450 00:20:27,167 --> 00:20:31,583 three years later, Jacobs is ready to expand even further. 451 00:20:33,667 --> 00:20:38,250 - They have eyes on Europe, but a big problem arises, war. 452 00:20:38,333 --> 00:20:40,708 [dramatic music] 453 00:20:40,833 --> 00:20:44,583 - The United States enters World War II in December of 1941, 454 00:20:44,708 --> 00:20:47,792 and who would've thought it would last four years? 455 00:20:47,875 --> 00:20:50,500 - On January 1st, 1942, 456 00:20:50,583 --> 00:20:54,042 the US government freezes all sales 457 00:20:54,125 --> 00:20:57,458 of domestic cars in America. 458 00:20:57,542 --> 00:21:01,167 - All American resources, from food to materials, 459 00:21:01,250 --> 00:21:03,500 were being channeled into the war effort, 460 00:21:03,583 --> 00:21:05,667 and that means that companies like General Motors 461 00:21:05,750 --> 00:21:08,333 were no longer making passenger cars. 462 00:21:08,375 --> 00:21:11,375 Every ounce of metal was being used to create airplanes, 463 00:21:11,458 --> 00:21:13,625 ammunition, and military vehicles. 464 00:21:14,958 --> 00:21:16,833 - [Narrator] With the automotive industry completely focused 465 00:21:16,958 --> 00:21:20,708 on the war effort, Hertz prepares for the worst. 466 00:21:20,792 --> 00:21:25,333 - Suddenly, this car-hungry America can't get new cars, 467 00:21:25,375 --> 00:21:28,458 but there's Hertz with its national network. 468 00:21:28,542 --> 00:21:30,500 They were number one already, 469 00:21:30,583 --> 00:21:33,708 but they grew by leaps and bounds during the war because, 470 00:21:33,833 --> 00:21:36,375 in many ways, they were the wheels for Americans 471 00:21:36,375 --> 00:21:38,625 to get where they wanted to go. 472 00:21:38,708 --> 00:21:40,333 [dramatic music] 473 00:21:40,458 --> 00:21:42,167 - [Narrator] But the unexpected high demand 474 00:21:42,250 --> 00:21:44,917 for Hertz rentals leads to some issues. 475 00:21:46,167 --> 00:21:47,250 - She's parked right over there. 476 00:21:47,375 --> 00:21:49,167 - This man is a Hertz customer, 477 00:21:49,250 --> 00:21:51,292 and when he lands in the city, 478 00:21:51,375 --> 00:21:53,792 he has to go at extremely long distance 479 00:21:53,875 --> 00:21:57,000 to an unpleasant part of town just to get his car. 480 00:21:57,083 --> 00:21:58,792 - That's my car? 481 00:21:58,875 --> 00:22:00,333 You're not serious. 482 00:22:00,417 --> 00:22:03,250 - The quality of rental cars was diminishing quickly 483 00:22:03,375 --> 00:22:06,125 because there were no new cars being produced. 484 00:22:06,208 --> 00:22:08,625 So the rental cars that were out there were falling apart. 485 00:22:08,708 --> 00:22:10,292 They weren't getting serviced properly. 486 00:22:10,375 --> 00:22:12,167 It was not a great experience. 487 00:22:12,208 --> 00:22:14,292 - Don't worry, it'll get you from A to B. 488 00:22:17,042 --> 00:22:19,167 - And this particular moment 489 00:22:19,208 --> 00:22:21,833 not only can damage Jacobs' reputation, 490 00:22:23,083 --> 00:22:25,333 but it's going to turn this customer 491 00:22:25,417 --> 00:22:27,083 into his fiercest competitor. 492 00:22:28,375 --> 00:22:32,167 - Here are the keys, Mr. Avis. 493 00:22:32,292 --> 00:22:35,292 [intense dramatic music] 494 00:22:40,667 --> 00:22:43,667 - [Narrator] After World War II ends in 1945, 495 00:22:43,750 --> 00:22:45,667 automotive factories make the switch back 496 00:22:45,750 --> 00:22:48,542 from war to peacetime production. 497 00:22:50,500 --> 00:22:53,292 - The government halted sales of cars starting in 1942, 498 00:22:53,375 --> 00:22:56,333 and until 1945, not a single civilian car 499 00:22:56,458 --> 00:22:58,375 or commercial truck was built. 500 00:22:58,500 --> 00:23:00,833 - The automobile industry really picks back up 501 00:23:00,917 --> 00:23:02,000 after World War II 502 00:23:02,083 --> 00:23:04,542 because we had this post-war economic boom 503 00:23:04,667 --> 00:23:07,833 where all of these post-war suburbs spring up. 504 00:23:07,917 --> 00:23:09,375 - [Narrator] As the suburbs grow, 505 00:23:09,458 --> 00:23:12,000 the need for new cars skyrockets, 506 00:23:14,875 --> 00:23:16,875 and after returning home from service, 507 00:23:16,958 --> 00:23:20,417 an Air Force veteran quickly sets his sights 508 00:23:20,542 --> 00:23:23,083 on tapping into this lucrative industry. 509 00:23:23,167 --> 00:23:25,125 His name is Warren Avis. 510 00:23:25,208 --> 00:23:26,667 - Fresh out of military, 511 00:23:26,750 --> 00:23:28,333 looking for a new venture, he thinks, 512 00:23:28,375 --> 00:23:29,583 now that the war is over, 513 00:23:29,667 --> 00:23:32,208 there's a backlog of people wanting cars. 514 00:23:32,333 --> 00:23:34,458 Production's back in process. 515 00:23:34,542 --> 00:23:37,250 So Warren Avis opens up a Ford dealership. 516 00:23:37,375 --> 00:23:39,667 He's very ambitious, he's very hungry, 517 00:23:39,708 --> 00:23:42,667 and he thinks this is gonna be his golden ticket. 518 00:23:42,750 --> 00:23:46,333 - [Narrator] Avis sinks in $10,000 of his own savings 519 00:23:46,417 --> 00:23:49,583 and secures a $75,000 loan, 520 00:23:49,667 --> 00:23:53,000 but a new government ruling puts a damper on his plan. 521 00:23:53,042 --> 00:23:55,542 - The federal government had actually put a cap 522 00:23:55,625 --> 00:23:58,167 on what you could charge 523 00:23:58,208 --> 00:24:02,000 for an automobile to curb inflation, 524 00:24:02,042 --> 00:24:04,875 but what it also does is curb the car salesman's ability to, 525 00:24:05,000 --> 00:24:06,167 you know, make a living. 526 00:24:06,208 --> 00:24:08,333 - Got you set up with all the bells and whistles, 527 00:24:08,417 --> 00:24:09,958 everything top of the line. 528 00:24:10,042 --> 00:24:13,042 - [Narrator] However, Avis finds a clever loophole. 529 00:24:13,125 --> 00:24:14,875 - Your signature and deposit, 530 00:24:14,958 --> 00:24:17,500 and we'll let you know as soon as we have one available. 531 00:24:19,417 --> 00:24:21,375 - Why can't I have one today? 532 00:24:21,458 --> 00:24:23,333 I saw several on the lot. 533 00:24:23,458 --> 00:24:24,500 - Those aren't for sale just yet. 534 00:24:24,583 --> 00:24:25,708 We're hoping in six months. 535 00:24:25,792 --> 00:24:27,083 - He realizes, you know what, 536 00:24:27,208 --> 00:24:30,000 let me hang on to my new cars for half a year 537 00:24:30,083 --> 00:24:32,292 and sell them as used cars. 538 00:24:32,375 --> 00:24:35,000 Used cars are not subject to the controls 539 00:24:35,042 --> 00:24:36,375 of the federal government. 540 00:24:36,458 --> 00:24:38,500 - My advice, reserve your spot 541 00:24:38,542 --> 00:24:40,833 before the wait list gets any longer. 542 00:24:40,917 --> 00:24:44,167 - He can sell used cars for a whole heck of a lot more 543 00:24:44,208 --> 00:24:45,625 and in some cases, 544 00:24:45,708 --> 00:24:48,708 even twice what he could've sold the new car for. 545 00:24:50,000 --> 00:24:51,000 - That's okay. 546 00:24:52,583 --> 00:24:53,708 Thank you anyway. 547 00:24:54,625 --> 00:24:56,750 [intense music] 548 00:24:56,833 --> 00:24:59,000 - But times are hard for Avis. 549 00:24:59,042 --> 00:25:02,500 He's buying inventory and letting it sit for six months, 550 00:25:02,542 --> 00:25:05,417 and that's causing a huge cash flow problem. 551 00:25:05,500 --> 00:25:06,958 So he had to change something. 552 00:25:09,583 --> 00:25:12,042 - He thought, well, if Americans are itchy 553 00:25:12,125 --> 00:25:13,167 to drive these things 554 00:25:13,250 --> 00:25:15,958 and I have all these cars on the dealership lot, 555 00:25:16,042 --> 00:25:19,750 we should put new cars into the hands of renters. 556 00:25:21,125 --> 00:25:23,000 - And he says, well, I'm gonna rent them for six months, 557 00:25:23,083 --> 00:25:24,667 and then I'll sell them as used cars 558 00:25:24,750 --> 00:25:26,542 and make even more money. 559 00:25:26,625 --> 00:25:28,208 - Avis has seen firsthand 560 00:25:28,292 --> 00:25:31,958 that Hertz's rental cars are beat up and outdated models. 561 00:25:32,042 --> 00:25:35,875 Avis has the idea that his cars will always be brand new. 562 00:25:37,167 --> 00:25:39,333 - Avis approaches Ford Motor Company, and he says, 563 00:25:39,458 --> 00:25:41,750 "Hey, have I got a deal for you. 564 00:25:41,833 --> 00:25:45,333 If you make me a great bargain on these new cars, 565 00:25:45,417 --> 00:25:49,167 renters will get to see, drive, experience this new car, 566 00:25:49,250 --> 00:25:52,000 and they're a lot more likely to buy one." 567 00:25:52,042 --> 00:25:55,000 - [Narrator] But even in Avis's hometown of Detroit, 568 00:25:55,042 --> 00:25:58,958 Hertz holds a monopoly over the all-important city center 569 00:25:59,042 --> 00:26:00,833 and railway locations. 570 00:26:00,917 --> 00:26:02,750 So Avis turns his attention 571 00:26:02,875 --> 00:26:07,500 to an untapped transportation hub, airports. 572 00:26:07,625 --> 00:26:09,000 - During World War II, 573 00:26:09,083 --> 00:26:12,000 military aircraft had actually used local airports 574 00:26:12,083 --> 00:26:15,500 for official purposes, and so the net result of that 575 00:26:15,625 --> 00:26:16,833 is that they had improved them. 576 00:26:16,875 --> 00:26:18,333 They had built new hangars, 577 00:26:18,417 --> 00:26:20,583 they had made sure that the runways were in great shape. 578 00:26:20,667 --> 00:26:22,167 And after the war, 579 00:26:22,250 --> 00:26:24,792 those weren't needed for military purposes. 580 00:26:24,875 --> 00:26:26,250 - Thanks to a lot of the advancements 581 00:26:26,333 --> 00:26:27,875 that we had during World War II, 582 00:26:27,958 --> 00:26:30,792 now air travel was starting to seem incredibly reliable, 583 00:26:30,875 --> 00:26:32,500 safe, and more importantly, 584 00:26:32,583 --> 00:26:35,167 extremely efficient for business travel. 585 00:26:35,250 --> 00:26:37,250 - But that business person lands 586 00:26:37,333 --> 00:26:39,750 and he has to go to a meeting 50 miles away 587 00:26:39,833 --> 00:26:41,833 from the airport, and the rental car companies 588 00:26:41,917 --> 00:26:44,417 are all located downtown in garages. 589 00:26:44,500 --> 00:26:45,833 They're not accessible. 590 00:26:47,042 --> 00:26:49,667 [intense music] 591 00:26:49,750 --> 00:26:52,708 - When Warren Avis was in the Air Force, 592 00:26:52,833 --> 00:26:55,792 he firsthand experienced the challenges 593 00:26:55,875 --> 00:26:59,333 of getting to a new city without any real convenient 594 00:26:59,417 --> 00:27:01,333 or reliable way of getting around. 595 00:27:01,417 --> 00:27:05,167 Famously, he used to put his bike in the bomb bay doors 596 00:27:05,250 --> 00:27:08,083 so that when he landed, he could at least get around. 597 00:27:09,208 --> 00:27:11,167 - [Narrator] Avis believes this inconvenience 598 00:27:11,208 --> 00:27:13,500 is something he can take advantage of. 599 00:27:13,542 --> 00:27:14,750 - Avis has this genius idea 600 00:27:14,875 --> 00:27:16,708 that Hertz hasn't yet figured out, 601 00:27:16,833 --> 00:27:18,875 to bring the car rental agency 602 00:27:18,958 --> 00:27:21,625 to the customer directly at the airport. 603 00:27:21,708 --> 00:27:24,333 - [Narrator] This idea will one day birth 604 00:27:24,417 --> 00:27:27,167 a $12 billion a year empire 605 00:27:27,250 --> 00:27:32,125 with over 5,500 locations in 165 countries. 606 00:27:33,875 --> 00:27:38,375 Now he just needs the perfect place to test out his concept. 607 00:27:39,208 --> 00:27:40,833 [contemplative music] 608 00:27:40,833 --> 00:27:45,625 And in 1946, he finds one 30 minutes from downtown Detroit, 609 00:27:47,167 --> 00:27:48,625 the Willow Run Airport. 610 00:27:50,083 --> 00:27:51,750 - Oh, okay. 611 00:27:52,708 --> 00:27:54,042 Yeah, that's pretty steep. 612 00:27:55,250 --> 00:27:56,375 Let me ask you this, 613 00:27:56,458 --> 00:27:58,042 what would be the cheapest location? 614 00:28:00,875 --> 00:28:03,083 - He negotiates setting up a rental car counter in the 615 00:28:03,167 --> 00:28:06,542 last place most businesses would want to be located, 616 00:28:06,625 --> 00:28:08,292 which is an airport baggage claim. 617 00:28:09,708 --> 00:28:10,917 - Thank you very much. 618 00:28:11,708 --> 00:28:13,167 [receiver slams] 619 00:28:13,250 --> 00:28:15,708 - Even though there is no question that the future 620 00:28:15,833 --> 00:28:18,292 of travel was going to involve flight, 621 00:28:18,375 --> 00:28:19,792 the future was not there yet. 622 00:28:19,875 --> 00:28:22,000 Most Americans had not yet set foot on a plane, 623 00:28:22,042 --> 00:28:24,000 so to kind of stake your business 624 00:28:24,083 --> 00:28:26,917 on that kind of site was really risky. 625 00:28:28,292 --> 00:28:30,208 - From the moment passengers arrive at baggage claim, 626 00:28:30,333 --> 00:28:32,667 you've got 20 minutes to turn them into paying customers. 627 00:28:32,750 --> 00:28:34,833 - While passengers are waiting for their bags, 628 00:28:34,875 --> 00:28:37,375 Avis employees have the chance to pitch them 629 00:28:37,458 --> 00:28:39,250 on the concept of the rental car. 630 00:28:39,375 --> 00:28:41,000 - Most important thing, 631 00:28:41,083 --> 00:28:42,667 our cars are located just outside 632 00:28:42,750 --> 00:28:44,250 in the lot across from the terminal, 633 00:28:44,333 --> 00:28:47,125 and you even walk them straight to their car. 634 00:28:47,125 --> 00:28:48,667 They mention Hertz, pretend you didn't hear it. 635 00:28:48,708 --> 00:28:49,792 Just keep talking. 636 00:28:50,625 --> 00:28:51,833 [tense dramatic music] 637 00:28:51,958 --> 00:28:53,208 - [Narrator] In 1946, 638 00:28:53,292 --> 00:28:55,917 Avis Airlines Rent-a-Car officially opens 639 00:28:56,000 --> 00:28:58,542 for business at the Willow Run Airport 640 00:28:58,625 --> 00:29:00,250 on the outskirts of Detroit. 641 00:29:02,000 --> 00:29:05,208 - Customers could get their bag, talk to an agent, 642 00:29:05,333 --> 00:29:09,333 rent their car, and drive off wherever they wanted to go. 643 00:29:09,375 --> 00:29:12,750 By making it easy, by making it accessible, 644 00:29:12,833 --> 00:29:15,250 they started a rental car revolution. 645 00:29:17,375 --> 00:29:20,750 - I personally travel a lot, and I rent cars a lot, 646 00:29:20,833 --> 00:29:24,167 and it's hard to ever imagine a rental car economy 647 00:29:24,208 --> 00:29:27,000 without renting cars right at the airport. 648 00:29:27,083 --> 00:29:29,708 - Could you imagine flying, landing at your airport, 649 00:29:29,833 --> 00:29:31,042 oh, I need my car. 650 00:29:31,042 --> 00:29:33,333 Wait, I have to figure out how to get downtown 651 00:29:33,375 --> 00:29:34,833 to a garage to get it? 652 00:29:34,875 --> 00:29:36,125 That wasn't gonna work. 653 00:29:37,750 --> 00:29:39,333 - [Narrator] After his initial success, 654 00:29:39,458 --> 00:29:42,625 Avis is determined to build a rental empire 655 00:29:42,708 --> 00:29:44,875 that rivals Hertz. 656 00:29:44,875 --> 00:29:46,958 - His focus was on opening airport locations 657 00:29:47,042 --> 00:29:48,833 because there was no competition there. 658 00:29:48,875 --> 00:29:50,250 [paper rustles] 659 00:29:50,375 --> 00:29:51,875 - [Narrator] This time, he picks an airport 660 00:29:51,958 --> 00:29:54,875 in one of America's hottest vacation spots. 661 00:29:57,208 --> 00:30:00,333 - So Warren Avis chooses to expand his business 662 00:30:00,417 --> 00:30:03,833 halfway across the country in the Miami-Dade Airport. 663 00:30:03,958 --> 00:30:07,458 Avis, having been a major in the Air Force, 664 00:30:07,542 --> 00:30:12,333 knows the big transit hubs, sees where people are traveling, 665 00:30:12,375 --> 00:30:14,792 where the most air traffic is going. 666 00:30:17,375 --> 00:30:20,000 - [Narrator] But expanding to a high profile location 667 00:30:20,042 --> 00:30:23,917 puts squarely on the radar of his biggest competitor. 668 00:30:24,000 --> 00:30:26,833 - Hertz had been running at number one for so long, 669 00:30:26,875 --> 00:30:29,083 they weren't paying much attention to Avis. 670 00:30:29,208 --> 00:30:31,000 - He'll be out of business in a year. 671 00:30:31,125 --> 00:30:33,542 - Jacobs doesn't take Avis too seriously, 672 00:30:33,625 --> 00:30:35,167 doesn't know who he is. 673 00:30:35,292 --> 00:30:38,167 He thinks renting cars at airports is kind of a novelty. 674 00:30:38,250 --> 00:30:40,167 - In fact, their strategy was, 675 00:30:40,250 --> 00:30:42,500 let's not worry about what they're doing. 676 00:30:42,542 --> 00:30:44,000 We're number one. 677 00:30:44,083 --> 00:30:45,250 [dramatic suspenseful music] 678 00:30:45,375 --> 00:30:46,917 - [Narrator] It's a decision that sets the stage 679 00:30:47,042 --> 00:30:50,708 for a dramatic power shift in the rental car arena 680 00:30:50,833 --> 00:30:52,833 and will put Jacobs on the back foot 681 00:30:52,958 --> 00:30:54,375 of the industry he invented. 682 00:30:54,458 --> 00:30:57,500 - He will soon find out that the truth hurts. 683 00:31:02,167 --> 00:31:03,625 - [Narrator] Just as Warren Avis 684 00:31:03,708 --> 00:31:07,042 is getting his airport car rental business off the ground, 685 00:31:07,167 --> 00:31:09,750 technological advancements in the 1950s 686 00:31:09,875 --> 00:31:13,417 catapult American aviation into a new era. 687 00:31:13,500 --> 00:31:14,917 - For the first time, 688 00:31:15,000 --> 00:31:16,667 you see companies like Boeing constructing jet engines 689 00:31:16,708 --> 00:31:18,042 for commercial planes. 690 00:31:18,125 --> 00:31:19,458 - With those big engines, 691 00:31:19,542 --> 00:31:22,167 it suddenly made flying commercial air affordable 692 00:31:22,208 --> 00:31:24,625 the same way the Model T put America 693 00:31:24,708 --> 00:31:26,500 on wheels decades before. 694 00:31:27,583 --> 00:31:29,250 That was the dawn of the jet age 695 00:31:29,333 --> 00:31:32,042 for American consumer travel. 696 00:31:32,125 --> 00:31:34,333 America was ready to fly. 697 00:31:34,417 --> 00:31:35,625 [dramatic music] 698 00:31:35,708 --> 00:31:38,458 - [Narrator] But even with air travel up 1,500% 699 00:31:38,542 --> 00:31:39,875 since the previous decade, 700 00:31:42,375 --> 00:31:47,125 Warren Avis's plan for expansion is off to a slow start. 701 00:31:47,208 --> 00:31:50,333 - Warren Avis opens up in Miami with 11 cars, 702 00:31:50,375 --> 00:31:53,833 that's his fleet, and didn't quite go as he'd hoped. 703 00:31:53,917 --> 00:31:55,708 He's not getting the business that he wanted, 704 00:31:55,833 --> 00:31:57,958 so he's a little bit perplexed. 705 00:31:58,042 --> 00:32:02,000 - Miami International Airport is a massive airport, 706 00:32:02,083 --> 00:32:05,083 and it's incredibly hard for the employees 707 00:32:05,167 --> 00:32:09,167 to get the word out about his rental car opportunity. 708 00:32:09,250 --> 00:32:13,667 So Avis realizes he needs to find another way 709 00:32:13,708 --> 00:32:15,542 to reach customers at the airport. 710 00:32:16,708 --> 00:32:18,042 [tense music] 711 00:32:18,125 --> 00:32:20,000 - Warren Avis realized that customers 712 00:32:20,083 --> 00:32:22,333 are essentially sitting ducks on flights. 713 00:32:22,417 --> 00:32:24,833 He has the idea to put advertising brochures 714 00:32:24,917 --> 00:32:26,625 in the seat back pockets. 715 00:32:26,708 --> 00:32:28,792 [paper rustles] 716 00:32:28,875 --> 00:32:31,917 - [Narrator] Avis strikes a deal with American Airlines, 717 00:32:33,042 --> 00:32:34,500 and that's just the beginning. 718 00:32:34,542 --> 00:32:35,792 - Just to let you know, 719 00:32:35,875 --> 00:32:37,167 American Airlines will be running them. 720 00:32:38,500 --> 00:32:43,042 No, not just American, Continental, TWA, and Pan Am. 721 00:32:43,917 --> 00:32:45,000 - Nowadays you have everything 722 00:32:45,083 --> 00:32:47,583 from restaurant recommendations, coupons, 723 00:32:47,708 --> 00:32:52,333 car rental information, but all of that begins with one man. 724 00:32:53,875 --> 00:32:55,583 - Sure, I can send you a shipment. 725 00:32:58,125 --> 00:33:00,125 [receiver thuds] [dramatic music] 726 00:33:00,208 --> 00:33:02,292 - [Narrator] As business soars in Miami, 727 00:33:02,375 --> 00:33:05,458 Avis rapidly expands over the next seven years. 728 00:33:05,542 --> 00:33:08,333 - Avis sticks to his plan of operating at airports 729 00:33:08,375 --> 00:33:10,958 and makes deals with airports across the country. 730 00:33:11,042 --> 00:33:12,333 - Americans have more leisure time. 731 00:33:12,375 --> 00:33:15,167 They wanna take vacations that they can drive on. 732 00:33:15,208 --> 00:33:17,667 - As people go farther away from their homes 733 00:33:17,667 --> 00:33:20,083 and have to fly there, they need a car when they get there. 734 00:33:20,167 --> 00:33:21,375 So when you're on vacation, 735 00:33:21,458 --> 00:33:23,708 having a rental car makes it much more easy 736 00:33:23,792 --> 00:33:26,083 to get around an unfamiliar place. 737 00:33:26,167 --> 00:33:29,167 - For the first time, you can come and go as you please, 738 00:33:29,250 --> 00:33:32,375 explore what you want, when you want, where you want. 739 00:33:34,125 --> 00:33:35,583 - [Narrator] By 1953, 740 00:33:35,667 --> 00:33:38,833 Avis becomes the second- largest car rental company 741 00:33:38,917 --> 00:33:42,917 in the US, spreading to 75 airport locations 742 00:33:43,000 --> 00:33:46,292 from Washington, DC, Dallas, New York, 743 00:33:46,375 --> 00:33:49,667 to right in Hertz's own backyard, Chicago. 744 00:33:50,708 --> 00:33:53,542 [intense music] 745 00:33:54,875 --> 00:33:57,250 - I saw this on my flight in. 746 00:34:00,042 --> 00:34:03,000 They had a counter at baggage claim. 747 00:34:03,083 --> 00:34:04,375 It was packed. 748 00:34:05,458 --> 00:34:06,750 - It's been years 749 00:34:06,875 --> 00:34:09,292 since Avis launched his first airport car rental service, 750 00:34:09,375 --> 00:34:10,750 and Jacobs hasn't made the move 751 00:34:10,875 --> 00:34:12,667 to put Hertz into airports as well. 752 00:34:17,167 --> 00:34:18,792 - So much of their market share 753 00:34:18,875 --> 00:34:20,292 was being eroded by this upstart 754 00:34:20,375 --> 00:34:22,375 that quickly became number two. 755 00:34:22,458 --> 00:34:26,625 Walter Jacobs and Hertz were like, what's happening here? 756 00:34:26,708 --> 00:34:28,750 - This is a huge wake up call for Jacobs, 757 00:34:28,833 --> 00:34:30,208 seeing as how he, you know, 758 00:34:30,333 --> 00:34:33,167 invented the idea of a rental car, 759 00:34:33,250 --> 00:34:36,875 and now he has competition that is somehow beating him 760 00:34:36,958 --> 00:34:38,875 at the game he created. 761 00:34:38,958 --> 00:34:43,083 [dramatic suspenseful music] 762 00:34:43,167 --> 00:34:45,167 - O'Hare International Airport, please. 763 00:34:45,208 --> 00:34:47,708 - So Jacobs says, okay, I want a piece of the action. 764 00:34:49,167 --> 00:34:51,542 - Hi, yes, I was interested in leasing a booth 765 00:34:51,667 --> 00:34:54,042 or some counter space in baggage claim. 766 00:34:56,000 --> 00:34:57,583 No, Hertz. 767 00:34:58,833 --> 00:35:01,458 [intense music] 768 00:35:03,292 --> 00:35:05,583 I didn't realize you had an exclusive contract. 769 00:35:05,667 --> 00:35:08,667 - Avis had negotiated exclusivity rights 770 00:35:08,750 --> 00:35:10,167 to all the airports. 771 00:35:10,208 --> 00:35:12,125 You gotta love a good exclusivity agreement. 772 00:35:12,208 --> 00:35:14,583 I mean, that is brilliant. 773 00:35:14,667 --> 00:35:15,667 - No, that's all. 774 00:35:16,708 --> 00:35:19,083 - The revelation that Avis has exclusive contracts 775 00:35:19,208 --> 00:35:21,000 at all of these airports 776 00:35:21,125 --> 00:35:23,250 isn't just a little bit of a hiccup. 777 00:35:23,333 --> 00:35:26,417 It could spell complete and total disaster and failure 778 00:35:26,500 --> 00:35:29,667 for Jacobs and the entire Hertz company. 779 00:35:29,750 --> 00:35:32,750 - Find out every airport Avis is in and every one he isn't. 780 00:35:32,875 --> 00:35:34,708 I wanna list on my desk by the end of the day. 781 00:35:34,875 --> 00:35:38,583 - He realizes that the entire industry is shifting, 782 00:35:38,708 --> 00:35:41,458 and car rentals at airports are crucial, 783 00:35:41,542 --> 00:35:45,750 and if he does not find a way to surpass this obstacle, 784 00:35:45,833 --> 00:35:48,042 Hertz may go the way of the dodo. 785 00:35:48,125 --> 00:35:50,375 [dramatic suspenseful music] 786 00:35:55,667 --> 00:35:57,625 [dramatic music] 787 00:35:57,708 --> 00:35:58,792 - [Narrator] In 1953, 788 00:35:58,875 --> 00:36:00,250 Avis is the nation's number two rental car company. 789 00:36:00,375 --> 00:36:01,833 - Thank you very much. - And they continue 790 00:36:01,875 --> 00:36:03,333 to gun for Hertz. 791 00:36:03,458 --> 00:36:06,333 - Warren Avis was not always known for his patience. 792 00:36:06,417 --> 00:36:08,000 He liked to move fast, and, you know, 793 00:36:08,083 --> 00:36:10,333 he's launched this big rental car company, 794 00:36:10,375 --> 00:36:12,750 and he's looking up at Hertz up there at number one, 795 00:36:12,833 --> 00:36:15,167 and he's like, we gotta grow. 796 00:36:15,292 --> 00:36:17,167 - It's time for Avis's next phase 797 00:36:17,250 --> 00:36:19,167 of his car rental takeover, 798 00:36:19,292 --> 00:36:21,333 opening locations in city centers 799 00:36:21,417 --> 00:36:23,292 right in Hertz's stronghold. 800 00:36:25,208 --> 00:36:27,042 - [Narrator] As Avis closes in on Hertz, 801 00:36:27,042 --> 00:36:29,333 [dramatic music] 802 00:36:29,375 --> 00:36:32,417 Walter Jacobs will do anything to stay on top. 803 00:36:34,542 --> 00:36:36,333 - At this point, neither Hertz or Avis 804 00:36:36,500 --> 00:36:38,667 have become a truly international brand. 805 00:36:38,750 --> 00:36:41,583 Hertz opened up a few locations in Canada, the UK, 806 00:36:41,708 --> 00:36:42,708 and Mexico, 807 00:36:42,708 --> 00:36:45,292 and now Jacobs is thinking further afield. 808 00:36:45,375 --> 00:36:47,750 - [Narrator] And he brings his idea to a trusted friend 809 00:36:47,833 --> 00:36:50,875 who is now on the General Motors board of directors. 810 00:36:50,958 --> 00:36:52,833 - [John] What are you working on? 811 00:36:52,917 --> 00:36:54,750 - [Narrator] John D. Hertz. 812 00:36:54,833 --> 00:36:57,000 [dramatic suspenseful music] 813 00:36:57,042 --> 00:37:00,375 [soft dramatic music] 814 00:37:00,458 --> 00:37:03,708 - I wanna be the first in Paris's Orly Airport. 815 00:37:04,750 --> 00:37:06,458 You think the board will go for it? 816 00:37:07,875 --> 00:37:10,583 - I don't think the board will much care either way. 817 00:37:12,083 --> 00:37:14,333 They're spinning off the rental car business, 818 00:37:15,542 --> 00:37:19,167 part of a whole company-wide reorganization. 819 00:37:19,208 --> 00:37:22,375 - By 1953, the car business across the globe 820 00:37:22,500 --> 00:37:24,375 was such a big burgeoning business. 821 00:37:24,458 --> 00:37:26,917 General Motors decided they would sell, 822 00:37:27,000 --> 00:37:29,208 focus on the manufacturing. 823 00:37:29,292 --> 00:37:31,583 - I wanted you to hear it from me. 824 00:37:31,667 --> 00:37:35,375 - For Walter Jacobs, this is deja vu all over again. 825 00:37:35,458 --> 00:37:37,500 If General Motors sells off Hertz, 826 00:37:37,500 --> 00:37:40,375 whoever buys it could tell him to get lost 827 00:37:40,458 --> 00:37:42,333 from the very company he started, 828 00:37:42,375 --> 00:37:45,417 and he will not see a penny. 829 00:37:45,500 --> 00:37:48,167 - We're the number one car rental company in the world. 830 00:37:48,250 --> 00:37:49,500 - I know. 831 00:37:49,583 --> 00:37:51,208 - Well, who the hell are they selling us to? 832 00:37:54,042 --> 00:37:55,333 - Me. 833 00:37:56,917 --> 00:37:58,250 [contemplative music] 834 00:37:58,333 --> 00:37:59,417 - [Narrator] Over two decades 835 00:37:59,542 --> 00:38:01,958 since selling his namesake rental company, 836 00:38:02,042 --> 00:38:03,792 Hertz buys it back. 837 00:38:05,167 --> 00:38:06,500 - John D. Hertz, 838 00:38:06,583 --> 00:38:09,708 who was watching Avis make such a big move 839 00:38:09,708 --> 00:38:13,417 on the company he'd founded and sold so many years before, 840 00:38:13,542 --> 00:38:16,125 decided, I want this back. 841 00:38:16,208 --> 00:38:18,917 [dramatic music] 842 00:38:21,792 --> 00:38:25,375 - Hertz buys back the rental company for $10.8 million, 843 00:38:26,708 --> 00:38:31,000 more than $120 million today, which is pretty amazing 844 00:38:31,083 --> 00:38:34,167 when you remember he sold his entire company to GM 845 00:38:34,250 --> 00:38:37,042 for almost five times that amount. 846 00:38:37,042 --> 00:38:38,792 [tense music] 847 00:38:38,875 --> 00:38:40,375 - [Narrator] With Hertz back in action, 848 00:38:40,458 --> 00:38:43,833 he and Jacobs are committed to taking down Avis 849 00:38:43,833 --> 00:38:46,750 and making Hertz a global empire together. 850 00:38:46,833 --> 00:38:50,333 - Two years from now, I want us to hit 1,000 locations. 851 00:38:50,458 --> 00:38:53,500 In 10 years, we should be in 1,000 cities. 852 00:38:53,583 --> 00:38:57,042 - Finally, you're thinking big enough. 853 00:38:57,125 --> 00:39:00,250 - When John Hertz finally decides to buy back the company, 854 00:39:00,333 --> 00:39:01,667 he changes the name 855 00:39:01,750 --> 00:39:05,333 from the deeply problematic Hertz Driv-Ur-Self 856 00:39:05,417 --> 00:39:08,000 to just Hertz, a powerful one-word name 857 00:39:08,083 --> 00:39:11,833 that has remained at that company till this very day. 858 00:39:11,958 --> 00:39:15,083 - [Narrator] Hertz soon expands into large European cities, 859 00:39:15,167 --> 00:39:16,875 beginning with Paris. 860 00:39:16,958 --> 00:39:18,208 - Only five years 861 00:39:18,292 --> 00:39:20,833 after opening their first European location, 862 00:39:20,917 --> 00:39:23,208 Hertz became the first rental car company 863 00:39:23,292 --> 00:39:26,875 to have more than 1,000 locations worldwide. 864 00:39:26,875 --> 00:39:30,458 - [Narrator] As Hertz continues to seek global domination, 865 00:39:30,542 --> 00:39:33,250 it's no longer just Avis they have to worry about. 866 00:39:33,375 --> 00:39:35,708 - The National Car Rental System, or National, 867 00:39:35,792 --> 00:39:37,417 came about with the gathering 868 00:39:37,542 --> 00:39:40,750 of a couple dozen independent rental car agency owners, 869 00:39:40,833 --> 00:39:43,583 and in Chicago, Budget Car Rentals sprang up, 870 00:39:43,667 --> 00:39:47,917 and you could rent a car for $4 a day and 4 cents a mile. 871 00:39:48,000 --> 00:39:50,167 This was unheard of. 872 00:39:50,167 --> 00:39:53,042 - [Narrator] With new rivals joining the rental car race, 873 00:39:53,125 --> 00:39:54,625 the market is flooded 874 00:39:56,583 --> 00:40:00,250 and despite operating in over 350 locations, 875 00:40:00,333 --> 00:40:04,333 in 1954, Warren Avis is feeling the heat. 876 00:40:04,500 --> 00:40:05,750 [tense music] 877 00:40:05,833 --> 00:40:07,208 - So with all the competition 878 00:40:07,292 --> 00:40:09,583 from the smaller rental car agencies, 879 00:40:09,708 --> 00:40:12,333 he realized that the competition was heating up. 880 00:40:12,375 --> 00:40:13,792 Hertz was back in the game 881 00:40:13,875 --> 00:40:15,792 with some new energy and some new blood, 882 00:40:17,208 --> 00:40:19,625 and he decided he was gonna take his money and run. 883 00:40:22,125 --> 00:40:23,083 [dramatic music] 884 00:40:23,167 --> 00:40:24,333 - After making Avis 885 00:40:24,458 --> 00:40:26,458 the world's number two car rental company, 886 00:40:26,542 --> 00:40:29,667 Avis decides to sell for $8 million 887 00:40:29,833 --> 00:40:32,750 and goes on to have a life as an entrepreneur. 888 00:40:32,833 --> 00:40:33,833 [dramatic music] 889 00:40:33,875 --> 00:40:35,083 - [Narrator] He sells the business 890 00:40:35,167 --> 00:40:37,333 to a regional New England car rental company 891 00:40:37,417 --> 00:40:40,417 for the modern equivalent of almost $90 million, 892 00:40:41,333 --> 00:40:43,625 all from a $10,000 investment. 893 00:40:44,958 --> 00:40:47,125 - What's kind of remarkable is that Warren Avis 894 00:40:47,208 --> 00:40:48,583 was with his company, 895 00:40:48,667 --> 00:40:50,875 the company that still bears his name, 896 00:40:50,875 --> 00:40:52,750 for seven years. 897 00:40:52,750 --> 00:40:57,750 Whereas Walter Jacobs was with Hertz for 50. 898 00:40:57,833 --> 00:41:01,167 And in seven years, he changed the marketplace, 899 00:41:01,250 --> 00:41:03,125 adding a level of competition 900 00:41:03,208 --> 00:41:05,042 that had never been seen before 901 00:41:05,167 --> 00:41:09,333 but also innovated the way cars are rented to this day. 902 00:41:09,417 --> 00:41:10,708 - Despite the fact that Avis was able 903 00:41:10,875 --> 00:41:12,833 to put a dent into Hertz's profits, 904 00:41:12,917 --> 00:41:15,750 Avis was never really able to take the lead himself, 905 00:41:15,833 --> 00:41:18,667 but nonetheless, the competition, the rivalry, 906 00:41:18,792 --> 00:41:21,167 the innovations that came out of these two companies, 907 00:41:21,250 --> 00:41:24,208 I mean, they've led to this now $100 billion industry 908 00:41:24,292 --> 00:41:25,750 that we have for car rentals. 909 00:41:25,875 --> 00:41:28,208 - [Narrator] Today, Avis also operates 910 00:41:28,292 --> 00:41:30,625 Budget Rent-a-Car, and together, 911 00:41:30,708 --> 00:41:35,667 they're in over 5,500 locations in 165 countries, 912 00:41:36,917 --> 00:41:40,125 but their biggest accomplishment may be surpassing Hertz. 913 00:41:41,542 --> 00:41:44,708 But despite this feat, Avis isn't number one. 914 00:41:44,792 --> 00:41:48,875 It's a company that started in 1957 with a focus on renting 915 00:41:48,958 --> 00:41:53,125 to customers whose cars are being repaired, Enterprise. 916 00:41:56,083 --> 00:41:56,958 - Hertz and Avis, 917 00:41:57,042 --> 00:42:00,208 they essentially invented an industry. 918 00:42:00,292 --> 00:42:02,500 They changed the way we look at cars. 919 00:42:02,583 --> 00:42:03,958 They changed the way we travel. 920 00:42:04,042 --> 00:42:07,083 They've made our lives easier and more convenient. 921 00:42:07,167 --> 00:42:09,500 They forever left their mark on society. 922 00:42:09,542 --> 00:42:10,917 - When you go on a vacation, 923 00:42:11,000 --> 00:42:13,333 you have the chance to almost reinvent yourself 924 00:42:13,417 --> 00:42:14,750 and be someone else. 925 00:42:14,875 --> 00:42:17,125 Maybe you can't afford to buy a luxury car, 926 00:42:17,250 --> 00:42:19,667 but you could probably afford to rent it for a week, 927 00:42:19,750 --> 00:42:23,208 and for that week, you can be whoever you want to be, 928 00:42:23,333 --> 00:42:26,500 look how you want to look and drive what you want to drive.