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Hertz To Buy 100,000 Tesla Vehicles For Its Fleet
(Joe Raedle/Getty Images)

Hertz says its AI-powered damage scanners are supposed to enhance your customer experience

One customer told us he got charged $195 for a dent that looked like he “crashed into an ant.”

In recent weeks, thousands of existing and potential Hertz customers have derided the company’s move this year to install AI damage scanners at US airport locations.

The scanners, created by tech company UVeye, have been found to charge renters steep fees for seemingly minor (or even nonexistent) dings. Customers online have criticized the scanners as an AI shakedown: an ethically questionable practice with the goal of squeezing more cash out of renters. The tech has led many to declare they’ll never rent from the company again.

Those customers would probably be surprised to hear that Hertz says it actually installed the scanners for their benefit.

On the company’s Thursday earnings call, Hertz CEO Gil West said the digital inspection tech is part of an effort to build customer trust:

“Our job [is] to continue earning our customers’ trust every day by delivering value, consistency and reliability. That’s what we’ve set out to do with our digital vehicle inspections.

For over 100 years, manual damage inspections have caused confusion and frustration, creating unnecessary friction with customers. This technology is designed to bring much needed precision, objectivity and transparency to the process... We know change of this scale takes time, and we’re listening, learning and improving every day. Our goal is to enhance the customer experience by removing friction, sharing transparency, [and] building trust, not just for the 3% who experience damage, but also for the 97% who don’t.”

West somewhat casually stated that 3% of customers experience damage — a figure the company has repeated when asked about the AI scanners. While that number sounds small, it is significantly above historical industry averages of less than 1%. Hertz has not responded to repeated questions about its AI scanning tech.

The idea that the scanners “enhance the customer experience” doesn’t exactly match up with customers’ experiences. Sherwood News spoke to one recent Hertz renter named Travis who was charged $195 for damage — a minor dent that he said he did not cause — after his rental car was scanned by AI at the Houston airport.

Below: the “before” scan of the vehicle, followed by the damage found by AI that resulted in a $195 charge.

Travis, who asked that his last name not be published, joked that the size of the damage he was charged for looked like he “crashed into an ant” and said that the company’s customer service (which began with a chatbot) was the worst he’d ever experienced.

“The way [Hertz] handled this situation and the predatory practice that they now have in place with these AI scanners has completely turned me off from ever renting from them,” he said.

Other customers posting on Reddit have shared similar sentiments, including one who said the scanner incorrectly charged for damage that was actually water droplets from rain.

It may soon become harder to avoid AI scanning tech, as Hertz has said it will be installed at 100 US airports by the end of the year. More major rental companies (Hertz, Avis, and Enterprise together control 95% of the US rental business) are reportedly testing the technology, too.

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Tom Jones

Prime Day is here again and Amazon’s subscription service has never been more popular

Well, it’s that time of year again: many have made their wish lists, people are scraping together the money they’ve saved to pick out a perfect gift, some are presumably leaving out refreshments for the weary delivery drivers and, more and more, drones.

It’s Amazon Prime Day — meaning that it’s the second day of the four-day promotional event that Amazon still calls Prime Day — of course, and it’s even come early this year, with the company bringing the period into late June from July, when it’s been traditionally held for the last five years.

The Prime Age

Alongside the eyes and endless clicks that the arbitrary stream of listicles on “The Best Prime Day Deals” that almost every media outlet pours into, Amazon will also be cheering the fact that there’s now more Prime users than ever before to devour the retailer and its sellers’ sometimes-contested “discounts.” Indeed, according to the latest annual estimates from Consumer Intelligence Research Partners (CIRP), there were just over 200 million American shoppers using Amazon’s massive subscription service at the end of 2025.

business

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

business

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

business

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”

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