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Former TLPA President Mike Fogarty of Tristar Worldwide
Rockville, Md. — The Limousine Alternative Business Model Task Force—chaired by former Taxicab, Limousine & Paratransit Association (TLPA) president Mike Fogarty of Tristar Worldwide—is drafting a report that will be reviewed and commented on by the Limousine & Sedan Steering Committee (open to all current TLPA Limousine & Sedan Division members) when it meets at the TLPA Spring Conference & Expo/Taxicab Paratransit Association of California (TPAC) Annual Meeting in Palm Springs, Calif., from April 25-28.
The following excerpts from the draft report offer a good idea of what the conference will cover:
The Transportation Network Companies (TNCs) have had a negative impact on all forms of for-hire passenger transportation. This trend not only cuts across all segments, but also most geographical regions. Even in New York City, where TNC vehicles and drivers have been held to the same licensing standard as traditional operators, TNCs have taken significant shares from taxi, livery, black car, as well as high-end limousine providers. Most other states have passed some form of regulation regarding TNC operations. Unfortunately, everywhere in the United States except in NYC, the regulation of TNC operations falls short of the requirements placed on other licensed, for-hire passenger transportation services.
The TNCs have raised the bar of consumer expectations in the retail and corporate markets. When a corporate client calls to reserve a car ASAP, he/she really wants it now. Twenty- to 30-minute estimated times of arrival are no longer acceptable, as TNCs have a response time of five minutes or less in most major markets due to their scale (number of drivers), which gives them density of coverage. In addition to their scale, the largest TNCs have utilized vast amounts of capital to subsidize passenger costs, which has led to an expectation of lower rates for customers. Throw in a corporate client demographic that is growing more accustomed to technology coupled with increased expectations for immediate service at competitive rates, the traditional livery/black car/limousine industry must evolve or be replaced.
This Alternate Business Models paper will outline the efforts that several TLPA members are making to ensure the future success of their businesses. Although the initial impact has been the loss of some traditional sources of business, the TNCs have broadened the overall for-hire passenger transportation market. This will undoubtedly provide opportunities for traditional companies that evolve to meet the new customer demand. The areas of focus detailed in this paper include the following:
— Co-opetition/consortium model
— Integrating TNC business model into operations
— Consolidating livery/black car/limousine service in a national platform
— Focus on "Duty of Care" competitive advantage
— Diversify into larger vehicles and shuttle operations
— Expand event transportation and logistics capabilities
The draft report also outlines TLPA's recommendations for the association’s operators to upgrade their technology and operations to improve ease of use, speed of response, and reasonable rates while also moving into or strengthening more profitable segments of the business.
Visit tlpa.org for more information about both the report and the upcoming conference.
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CD Industry & Brand Ambassador and VLA Executive Director Philip Jagiela (left) with Barry Gross of Reston Limousine, who won a pass to the 2017 CD Show in Orlando
Centreville, Va. — Velocity Five was the host venue for President Paul Walsh of Superior Executive Transportation and more than 30 members of the Virginia Limousine Association (VLA) April 3. Among the attendees was Executive Director Philip Jagiela, who also serves as Chauffeur Driven’s Industry & Brand Ambassador.
Jagiela called the meeting to order with a special presentation to the membership. As VLA was recently honored with an Association of Excellence Award, all members received a copy of this certificate. Board members were presented with framed copies.
Walsh then took over and introduced VLA Treasurer Randy Allen of James Limousine to give the Financial Report. Meeting sponsors Zulfi Abbasi and Afzaal Iqbai of American Executive Sedan were then acknowledged and had a chance to address the group.
Chief Enforcement Officer Dennis Starks of the D.C. Department of For-Hire Vehicles next addressed the crowd as keynote speaker. Starks detailed a new app that is part of the Non-District Limousine (NDL) pilot program, for operators both in and out of district. It is being offered to operators at no initial cost as part of a beta test group. The current program will end August 31 and is limited to 300 permits. The NDL program allows approved operators to drive point-to-point inside the district
The app purports to connect riders with drivers who are “insured and vetted by the department,” according to Starks. “In addition, the drivers connected will have criminal background checks and an average of 20 years of professional driving experience.”
Starks also updated the membership on TNCs, regulations and enforcement in addition to the RIDE Act reporting requirements. Members who need more information on the app and DFHV NDL program, TNC regulations, and RIDE Act requirements can find it on the VLA website by logging into the members-only area of the association’s website.
VLA President Paul Walsh of Superior Executive Transportation
Walsh then introduced Barbara Arkwright of the Virginia Department of Motor Vehicles, who updated members on changes in taxi regulations. These will now return to control of the municipalities, and the agency will have very little to do with taxi regulations in the future.
“Per new state guidelines, TNC registration is no longer required,” she said. “Anyone can work as a TNC if they follow the current code.” Arkwright also reminded the group that their agency, responsible for enforcement, remains committed to working with VLA members.
VLA Secretary Glenn Stafford of Love Limousine provided the group with a charity committee snapshot that featured a $1,000 check as part of a recent award and plans to poll membership for a decision as to where the funds should be directed.
John Oulton of Richmond Limousine has accepted the position of communication chair. As part of his duties, he will elevate the social media efforts and create a bi-monthly newsletter.
Allen again addressed the members regarding the education committee. He will be working with Jagiela to draft a survey of education topics the members would like to see moving forward. After that, vendor partners were introduced, including Barry Trabb of Complete Fleet. He offered an affinity sponsorship program to the members with a $100 gift card for every vehicle purchased and a matching $100 gift back to the association for same.
Just before adjournment, Jagiela raffled off a pass to the 2017 Chauffeur Driven Show in Orlando, which will be October 22-25. Barry Gross of Reston Limousine was the winner of the full show pass.
The next VLA meeting will be held June 5 in the Virginia Beach region.
Visit vla-limo.org for more information.
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Attendees of the 2017 DATTCO Sales & Service Expo meet up on the show floor
The New England Livery Association (NELA) has been busy both reaping a long-overdue win on TNC battlegrounds and working to deliver relevant educational topics in tandem with Connecticut-based bus mainstay DATTCO for its annual expo.
Earlier this month, it was announced that more than 8,000 Massachusetts drivers for various TNC outfits were disqualified for operation after failing the state’s new background checks—background checks that members of NELA lobbied tirelessly to have put in place to ensure the riding publics’ safety.
Of the nearly 71,000 TNC drivers in the state who were under review, the 8,206 rejected account for 11 percent of a driving pool already approved by individual companies like Uber and Lyft. The background check nullified the companies’ approval based on both driving and criminal records that unearthed serious crimes and driving-related offenses: The agency tasked with conducting the state-level checks since January found the banned drivers’ histories included worrisome elements like sexual offenses, drunken driving, suspended licenses, and violence.
Adopted in 2016, the Massachusetts regulations for TNC drivers are among the strictest in the country. The state’s legislation goes back seven years in a drivers’ history to check for “less serious violent crimes” and moving violations like reckless driving and license suspensions; however, there is no cutoff time for sexual and violent crimes or drunken driving with serious—or fatal—consequences, and all such offenses are grounds for immediate disqualification at a statewide level.
NELA 2nd Vice President Tina Benson of L.A. Limousine learns about PAX Training at the DATTCO Expo
This recent rejection of thousands of TNC-approved drivers has inspired other states across the country to reconsider if their own background checks are thorough enough, which you can read more about at goo.gl/q0aHbi.
Regulations and operational legality were among the timely topics explored at the 2017 DATTCO Sales & Service Expo held April 13 at Foxwoods Casino in Mashantucket, Conn. NELA had partnered with DATTCO to deliver a four-session seminar that morning with each track—HR and bus ownership—comprising two classes. The industry beyond NELA’s region even helped guide the classroom component, with Dan Goff of A Goff Limousine & Bus Company presenting “Business Aspects to Consider when Studying Getting into Bus Operations” and LEADER Worldwide Chauffeured Service’s/PAX Training’s Bruce Heinrich discussing chauffeur retention.
Check out the May 2017 issue of Chauffeur Driven for an in-depth exploration of how NELA and DATTCO’s teamwork on this annual event benefited the expo’s attendees.
NELA’s next event will be its Chauffeur Appreciation Day June 8, followed by a quarterly membership meeting June 20.
Visit nelivery.org for more information.
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