Ride-hailing services Uber and Lyft are cutting into the profits of rental car companies, and Hertz and Avis are responding.

Both companies posted lackluster second quarter earnings last month; Hertz saw total revenues down 2 percent over the same period in 2016.

“We have made significant progress in the first half of the year, executing on our operating turnaround plan. Of course, the hard work always comes before the pay off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S.,” said Kathryn V. Marinello, president and CEO, Hertz. “Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes.”

Avis saw second quarter revenue unchanged from the same period last year; its stock shares dropped considerably last month.

“Our second quarter results in the Americas reflected both a 4 percent reduction in pricing resulting from industry over-fleeting and higher per-unit fleet costs due to lower used-vehicle values,” said Larry De Shon, president and CEO, Avis.

“Consequently, we have identified $25 million of additional savings opportunities globally, bringing our total expected savings this year to $75 million, and have lowered our full-year earnings guidance to reflect the difficult first half.”

De Shon said he’s optimistic, though: “Our recently announced partnerships with both Waymo and RocketSpace are providing opportunities to pilot scalable new business models as we start to execute on our strategy to leverage our fleet management and logistics capabilities in the rapidly developing mobility space. I’m also excited about all of the innovative growth initiatives we’ve announced this year, including enabling Avis customers to transact with us through Amazon Alexa and Google Home.”

These results come on the heels of Certify’s SpendSmart report release, which analyzed business travel spending April–June and showed Uber and Lyft picked up 2 percent of ground transportation traffic, while the car rental industry dropped 3 percent during the period.