DRIVING FOR DRINKERS: A young transportation entrepreneur at the University of California/San Diego has found a worthwhile chauffeured niche that doubles as a public service.
Drunk drivers kill 13,000 people each year in the U.S. Each accident could have been prevented had the driver ridden in a chauffeured vehicle.
Despite all the awareness, tougher laws, and social stigmas, drunk driving remains a chronic problem.
Drunks may not be the most appealing clients, but think about what you could prevent. That limousine tragedy underscores the need for such services. -- M.R.
DIVERSITY: While reading
this news piece on Pittsburgh Transportation Group hiring a new HR manager, it struck me once again how many sizable operators have over the years expanded their fleets beyond chauffeured transportation. And that also means taxis, which is ironic since the taxi industry has been hostile many times to the limo business when it comes to lobbying and pressuring airports and state/municipal bureaucrats to go easy on taxis and take it out on limos. Perhaps this will change that picture long term as taxi companies continue to lose revenue and chauffeured transportation expands. And perhaps the long term growth will be tied into operators becoming transportation companies and not just limo companies. Metro Cars (Taylor, Mich.) and Harrison Global (Waltham, Mass.) operate taxis along with chauffeured vehicles. AFC Corporate Transportation (Houston) has put school buses into its mix. And there are plenty of other operators who are building impressive transportation fleets especially through motorcoaches and shuttle/limo buses. The management duties are similar: hiring and training drivers; financing, maintaining and remarketing fleet vehicles; dealing with licensing and regulation mandates; setting up corporate accounts. Once you get into the transportation business, you can expand those skills and resources into ancillary markets. This could be a way to stabilize revenue and profits during economic downturns. -- J.L.
CHAMELEONS: Major car rental companies like Avis and Hertz are trying out several new outfits. Hertz is checking out
car sharing, and will compete with Zipcar. Avis and Hertz have invested heavily in the U.S. off-airport/local car rental market to compete with the largest rental fleet in the world, Enterprise Rent-A-Car,
as reported recently in LCT Magazine. And what else... hmmm, let's see, did I forget to mention chauffeured transportation? Avis is working closely with WeDriveU to enter major American markets and bypass for-hire licensing fees and regulations. Hertz is pushing Worldwide Executive Limousines in global markets, and is also taking steps to set up operations in the U.S. These are well funded, global competitors for limousine operators to take on, but it's not clear yet whether Avis or Hertz will be successful and choose to stay in this industry.
-- J.L.
CANADIAN HASSLES: Operators at the Pearson International Airport in Toronto have to deal with "scoopers," the Canadian term for illegal limousine operators who prey on tired passengers waiting in ground transportation lines. Casey Jason, a Toronto area operator and chairman of the Ontario Limousine Owners Association, recently was quoted in the
Toronto Sun warning operators about the practice. LCT Magazine recommends that the industry find a legal way to render these scoopers the transportation equivalent of pooper scoopers. -- M.R.
COULD BE WORSE: As the Big 3 automakers fail to win federal bailout funds, there's talk that one or more of these companies may declare bankruptcy. GM and Chrysler stressed the point they need immediate funding to stop gap December losses. But if they do declare bankruptcy, it's not the end of the world. It is something
happening in big numbers in the U.S. now for consumers and businesses, but federal judges overseeing bankruptcy cases don't shut the doors overnight. It could very well mean layoffs, revised labor agreements, downsizing production lines, and renegotiating with suppliers. And reinventing their mission statements and business strategies. If your company must consider bankruptcy, it could be worse. -- J.L.
CHEERS: It's that time of the year again... time to help your community by taking drunk drivers off the road. Chauffeured transportation companies know a lot about this, and some add this public service announcement to their promotions.
There' a lot being said on the subject by:
1.
NY 54 Limousines in Chandler, Ariz.
2.
Post-Tribune Columnist Bob Kostanczuk
3.
Texas DOT
We hope you enjoy your holidays and help your town enjoy theirs. -- J.L.
GETTING THE WORD OUT: Towne Auto Group's David Bastian sent out this letter to the chauffeured transportation industry to build support for the Detroit automakers during a very tough time.
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NYC NEWS: New York City's Mayor Bloomberg announced this morning an incentive program to motivate taxi owners to switch over to fuel efficient vehicles. This happens not long after a federal district court judge ruled that taxis don't have to live up to the TLC's 25 MPG mandate.
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STREET SWEEPING: A Queens, N.Y., police officer
was given kudos by a local newspaper for not letting Noble Limousine Service clog traffic. Noble was recruiting drivers and let them back up traffic for hours on 35th St. in Long Island City. Things got ugly until Highway Officer John Glynn rode his scooter through the clogged street and wrote summonses for the violators - motivating drivers to clear out of the way. That is one tough town. When you're providing luxury service - whether you're in NYC's livery, black car, or luxury limousine category, you want to be considered a high-level customer service provider and not just a bunch of punks.
NAME BRANDING: Building an effective company brand name is not easy. There are legal issues involved in trademark laws and corporate identity practices, and there are practical issues in establishing an effective, well remembered name. In chauffeured transportation, there are a lot of locally known company names that are sometimes identical or close to other operators in another part of the country. This can be a real problem when a competitor has that company name trademarked and wants to protect its company name in court. A less legally troubling problem is changing your company name inconsistently and confusing your customers. You may have added the words "worldwide," or "global," or "transportation," or something else to your website, but you still have the old company name everywhere else. And then you might change the name again in six months, further confusing people.
Here are a few articles to review that offer guidance on protecting your business name:
Business Name Registration
Picking the Perfect Name for your Corporation
How to Name Your Business
BAD GUYS: A limo operator and his mechanic are
going to jail in England for dealing cocaine. The limousine business was just a front for drug dealing. Using a chauffeured transportation business as a storefront for an illegal business, and to use the limos to transport contraband, also happens in the U.S., according to an FBI agent who spoke to me off the record. It's not a common occurrence, but it does happen near airports in major cities. It's very good to background check your affiliates and farm-outs - just in case.
-- J.L.
WHAT'S NEXT?: That election campaign was dragged out for quite a long time - nearly two years. It looks like the decision has been made and there won't be any lawsuits challenging state balloting, a la the 2000 election. Both McCain and Bush have given complimentary bow out speeches. So what's next for President-elect Obama, and how will this affect the chauffeured transportation industry?
CNN Money offers a good overview of the economic issues that affect the new administration. The limousine industry has mixed feelings. In an LCTmag.com web poll that happened about two months ago, a little more than half of the respondents backed McCain and the rest Obama. Speakers at industry events have mostly expressed apprehension about the impact of an Obama administration on labor laws and enforcement, business regulations, and taxes. Whatever the Obama administration and the increased number of Democratic House and Senate members go after, they have something much larger to deal with than anything else: the credit crisis and its impact on the global economy. They'll have to dig through this with the help of the other party, the business community, and the public.
-- Jon LeSage
NLA President Richard Kane recommends that members contact their U.S. senators on amendments to the Real Interstate Driver Equity (RIDE) Act. This will also be coming up before the House either in late November or after the first of the year.
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GREAT IDEA: What is it about bank robbers using limos to get away? The latest episode,
which happened in Dallas, is not the first time this has happened this year. Perhaps watching TV news or surfing the web gives these guys ideas: "Hey, I'm going to do that in my town!" A stretch limo might look much better as a getaway car than a rusted out, crashed in 1985 Buick LeSabre, but it doesn't seem to be working for these bad guys.
Here's commentary from New York City Taxi & Limousine Commission Chairman Matthew Daus on the Metropolitan Taxicab Board of Trade's lawsuit on the black car 25 MPG rule.
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Two previous chairpersons of the New York City Taxi & Limousine Commission are supporting the federal lawsuit filed by the Metropolitan Taxicab Board of Trade challenging the 25 MPG rule that is due to start up Oct. 31, 2008. Howard Harrison sent out this response in Limo Talk National Newswire from current chair Matthew Daus and the original press release announcing opposition to the TLC's mandate.
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CUSTOMER CONFLICT: It's not an easy time for operators, especially those in hurricane zones or dealing with corporate clients going out of business. Unfortunately, there's a more regular, routine problem that comes up: dealing with unruly, violent customers. Two stories were posted with this sad tale - one in
Toronto and one in
Daytona Beach. Why is it that an industry that provides such a high level of service gets dragged into these messes? Passenger alcohol and drug overuse is part of it, along with powder keg problems in major cities. Many chauffeured companies do what they can to subvert or stop these fights through chauffeur training, dispatcher communications, law enforcement agency relationships, and vehicle security equipment.
STRETCH MARKS: Corporate executives have been shunning stretch limousines for years now, especially after the Enron fiasco happened and federal corporate clean-up legislation was passed earlier this decade. And the negative public image goes back even further, especially into the 1980s. That's when people were worried about being perceived as similar to
Gordon Gekko. Gekko was the main character in the hit Oliver Stone movie,
"Wall Street," which lambasted financier corruption and ironically came out the same year as the October stock market plunge. These days, corporate execs want chauffeured rides, but they're being picked up in black sedans, SUVs, buses, and executive vans. Stretches are cool for retail customers (especially kids) who want them for special events and nights on the town. My, how things change.
WAGE TRENDS AND COMPARISONS: It goes without saying that wages and labor issues have moved to the forefront of operator concerns. Here are the latest findings from payscale.com on what chauffeurs are earning, based on experience and region of the country.
Operators with vehicles carrying more than 15 passengers (that means 14 plus driver) is requiring more from state and federal Dept. of Transportation standards, no matter if it's a stretch limo, bus, or van. Limousine Association of Houston President Joe Jordan sent out this Texas DOT summary to members.
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The U.S. Senate just passed a $25 billion loan program for automakers building fuel efficient vehicles. The House also passed this bill on Wednesday
and President Bush is expected to sign it by end of day tomorrow. Automakers have been lobbying hard for this money for nearly two years as they feel the pressure of increasing vehicle fuel efficiency at least 40% by 2020. To reach this level, automakers' costs will be more than $25 billion, but they've been asking for a cost-saving loan program such as this one. Detroit was able to get what it needs during days of $700 billion loan clamor.
California's Public Utilities Commission is
banning cellphone use by train engineers a week after a Metrolink crash in Los Angeles took 25 lives and badly injured other passengers. The engineer was text messaging that day, though it's not clear yet whether that was the cause of the collision. The PUC also oversees chauffeured transportation. California, like many other states, recently banned the use of hand-held cell phones in cars, requiring drivers to use speaker phones or Bluetooth. Communicating with chauffeurs in California and several other states should be regulated by operators and not so much by state governments.
There's a lot coming up very soon: LCT East at the Mohegan Sun, and then right after that, I'll be flying over to Chicago to attend the first-ever
Green Fleet Conference. I'm looking forward to learning more about the fuel and vehicle options that affect operators and will be covering it online and in LCT Magazine. Green Fleet is being put on by Automotive Fleet, a sister publication here at Bobit Business Media. It will mostly be made up of corporate and government fleet managers and auto manufacturers and suppliers promoting their green programs. This should be good - I used to cover that industry and know that fleet managers have been bringing alternative-fuel vehicles into their fleets since the early 1990s and have a lot of experience with every thing you can think about: CNG and LNG, propane, hybrids, hybrid electric, hydrogen fuel cell, ethanol, and in the '90s - methanol. I can't wait - maybe I'll see you there.
-- Jon LeSage
California Insurance Commissioner Steve Poizner is lobbying the state legislature to support his "pay-as-you-drive" insurance plan,
where drivers would pay insurance rates based on how many miles driven per year. The article doesn't mention drivers who go beyond the normal average of 15,000 to 20,000 miles per year in their personal cars. What about a chauffeured transportation vehicle that's running 50,000 or more miles a year? What would that cost compared to insurance rates paid by the industry today? Will transportation companies be considered seperately and be able to negotiate fleet discounts? This has to move through the state legislature, but it sounds like it could go over and be adopted.
Working the Democratic and Republican conventions is like having the Super Bowl in your city. You can make a lot of revenue and gain new clients, but you can also face a lot of problems. This is one of the main reasons operators should join state limousine associations. Officers and members from the Limousine Association of Colorado and the Minnesota Chauffeured Transportation Association have attended organizing sessions put on by convention planners and government agencies involved with the upcoming Democratic convention (Denver, Aug. 25-28) and the Republican convention (Minneapolis-St. Paul, Sept. 1-4). The associations are quite clear on state and federal transportation rules that control the events, and can negotiate with local government to resolve problems before they happen and inform members on what needs to be done to get through the conventions successfully.
Another story on a limo being used in a bank robbery, this time in the Pittsburgh area. This isn't the first time limos have been used in a crime. It's one of the weird parts of being in this industry, and it makes questions come up. Who owns this limo? Was the operator or chauffeur involved in the robbery? Will the police make this information public? Weird things definitely happen to transportation companies in this country, just ask somebody in the car rental industry.
LEARN HOW TO LOBBY: The chauffeured transportation industry is doing more government relations work now than ever. But it's not an easy thing to do at first - getting guidance is necessary. The Maryland Limousine Association is hosting a one-day training session on “how to lobby for your local limousine association”.
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Jim Luff discusses his recent insurance audit and offers advice on how to prepare for the site inspection.
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Ford's Limousine & Livery Manager Doug Walczak is sending out a letter to the industry on the "black car" MPG rules in New York City, and a method for changing over Town Cars and not having to only purchase hybrids. His detailed letter is presented here and is valuable for operators to read.
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Most operators get headaches when they think about having their offices inspected by the state highway patrol, public utilities commission, or some other agency. Stardust Cruises, based in Santa Maria, Calif., used this opportunity to put out a press release. Read on for a good example of how/why operators need to put out more company info to the media.
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Jim Luff laments new legal trends impacting the industry, including the brand-new “hands-free” cell phone law in California.
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Ever-increasing gasoline and diesel prices make the public and transportation business owners feel frustrated and powerless on a weekly basis. And being an elected official criticized for not doing anything about the crisis is also a stress machine. A
New York Times article lays out the heated argument in Congress. As the story says: "Fourth of July fireworks came early on Capitol Hill."
"The failure of the U.S. transportation network to meet the needs of a growing population and economy is already having an impact on everything from safety to the environment, from quality of life to economic growth. We must immediately reform the approach we take for funding, planning, and building infrastructure so that we can keep people and goods moving across the country and around the world." So says Thomas J. Donohue, president and CEO, U.S. Chamber of Commerce.
Click here to read his commentary and intense reader reactions.
Here's
a site to visit if want to read the latest on what's happening with airports and airlines: a topic that affects many chauffeured transportation operators. As airlines cut down on their flights to save money on jet fuel and other expenses, operators are losing some of their bookings. Staying posted is important these days.
He looks like such a nice guy, but is he ripping off the public? That's the claim made about North Carolina Governor Mike Easley
in the Charlotte Observer. The state spent $61,000 for daily chauffeured Mercedes rides for the governor and his wife. Is this reasonable for state taxpayers to cover? And how many chauffeured trips are they talking about? The point here is that chauffeured rides are being mentioned in the newspapers regularly these days as an example of misspending of tax funds. That is not good for the industry - keep it in mind as another topic for explaining the positive points on why elected officials and government agency managers are making a smart, effective move using chauffeured transportation.
New Jersey's Star-Ledger
ran a grim story about a New Jersey man who will be sentenced today for raping a limousine driver last year. Unfortunately, safety can be a crisis point for companies in this business, and having top security procedures and protocols in place is a must do. What does your company do? Feedback is always good to read.
AMERICAN INVASION: What can be more inspiring than the sight of an American-style limousine in London?
Our British brethren appear to embrace American limousines with enthusiasm, so much so in fact, that 40 percent of stretch limousines on British roadways are considered illegal.
A recent article highlights the
industry woes amid encouraging signs that demand for stretch limousines remains strong.
Now the British face the vexing trade-offs that many industry associations contend with across the U.S.: How do you regulate the limousine industry enough to ensure fair competition and safety, but not so much that you stifle businesses and entrepreneurship?
CRIMINAL HISTORY? Operators would be required to check drivers' criminal records if recently filed legislation becomes law in Massachusetts. Once authorities found out a registered sex offender with a suspended license had driven kids to a prom,
Rep. William Lantigua, D-Lawrence, filed the bill. Click here to read the story.
GREEN SCENE: Some "luxury limousine" companies doing business in New York City are going green, although they don't have to.
New York-based Town Car International is one of those companies, said Russ Cooke, CEO. Along with office greening, the company is implementing New York City Taxi & Limousines Commission guidelines. Although it doesn’t belong to the “black car” category; it is alternative-fuel vehicles including natural gas vehicles, hybrids, and bio-fueled vehicles; suggesting shared rides to clients when appropriate; and, using directional and tracking GPS units in all vehicles to improve usage and travel time, Cooke said.
Avoiding the mandatory purchase of fleet vehicles that get at least 25 mpg is a relief for "luxury limousine" operators. "Black car" operators are seeing the other side of the coin...
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Click here to read a column in the Orlando Sentinel where a chauffeur asked for guidance on the legal issues related to receiving tips from passengers. Feedback from an Orlando -based labor-and-employment lawyer is presented in the story.
Every limousine industry association should have a website. Most do, but it's important to keep them up-to-date, and a site that visitors would come back and use. The Great Lakes Limousine Association, a Michigan organization serving Detroit and other state markets, has upgraded its website.
Click here to see news, an event calender, GLLA officers, downloadable industry documents, and other useful information.
If you've never done it before, attending the NLA's once-a-year Day on the Hill is a thing of wonder. You get to walk through underground tunnels to meet with members of Congress and their key staffmembers... you get to smell and feel the history of the country's legislative center... you'll feel like you're making a difference informing decision makers about issues of great concern to chauffeured transportation companies. Go the
NLA website for details and a registration form.
CHAUFFEUR POSEURS ARE NOT ENTREPRENEURS: Prom season brings big demand for limousines, and plenty of opportunities for some off-the-books operators.
This article shows how a lack of enforcement in Maryland worsens the problem of illegal operators.
Another investigative
TV report reveals how an illegal operator was netted in Lynchburg, Va.
Both the
Virginia Limousine Association and
Maryland Limousine Association are examples of how associations nationwide can create awareness and enhance enforcement of the problem.
Legal operators should make available upon client request ample proof that they are registered either with the state's Public Utilities Commission, Public Service Commission, or comparable authorizing agency of operator licenses.
PROM AND GRADUATION SEASON: Showing proof of a legal operator license is good for business. Prospective clients are increasingly being made aware of the importance of doing business with limousine operators that are licensed and legal. In many states, consumers can verify an operator's status by contacting the Public Utilities Commission. A good public relations tactic for an operator is to become an authority in the local media on the subject of doing business with certified, legal chauffeured transportation providers. Operators should consider sponsoring public service announcements in high school publications and on school websites, as well as local homeowner association newsletters and websites.
One of the strongest sentiments among industry operatives at the ILCT Show was a growing exasperation with increasingly meddlesome governments at all levels. It seems as if politicians grasping for more tax nickels can’t seem to leave their pudgy, smudgy fingers off the polished limos. Like the fat kid that wants one more cookie-jar treat, the greasy-slippery finger crowd keeps trying to pick the pockets of limousine and chauffeured vehicle operators.
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Mayor Bloomberg’s speech last week on “green” regulations being implemented in New York City has intensely caught the attention of the chauffeured transportation industry. It’s not clear to the major companies whether they have to comply with these new rules and when that will happen. As for now, this is what we’re hearing about the proposed rules:
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