The Limos.com Forum Has Moved!!!

Limo Company Says It's Being Taken For A Ride
AVIS Is Not Fair, Whaaa

Limo Operators crying about the new AVIS Rent A Driver program:

"It means an executive who lands at Newark Liberty International Airport for a day of meetings in New York doesn't have to worry about hailing cabs, finding parking or footing a huge bill for a town car."

Based on the featured operator's cost of $50 + grat ($60) & compared to the hourly charge of $34.50 for the rental driver plus the rental cost of the vehicle, there isn't much of a savings for that executive on a one day business trip now is there.

So what's the crying about?

"The regulations most clearly come into play after an accident. If a driver for a limousine company gets into an accident, the company would be liable. If a driver for the AVIS program gets into an accident, the customer, who provides insurance to rent the car, would be liable, said Barry Lefkowitz, executive director of the Limousine Association of New Jersey."

Duh.... What's the difference? Hopefully Mr Big Shot Executive will understand this.

"We wanted to make sure it was clear the limousine industry was pro-consumer and very much desirous of seperating itself out in regards to safety, Lefkowitz said."

So Jersey has mandatory defensive driving courses & vehicle rotation laws? Anyone want to bet that AVIS runs a newer, lower mileage fleet?

"It's also a concept that irratates limousine companies. For example, Kramer of Impress Limousine said he spends $30,000 a year to register his five vehicles with the state."

Now who is responsible for this cost? Hmmmm....... Couldn't be the limo industry who helped shape the laws?

The photo with the article pictures limo operator Gary Kramer looking real "cabbie" sharp standing in front of a minibus.

Hmmm, is this the start of something really big?

1st AVIS starts the rent-a-chauffeur program

Now AVIS has acquired 45% of CAREY Stock & has obtained options to increase ownership to 80% within a year.

quote:

Originally posted by D. Hartson:
"The Industry" Define please! I don't know what that means anymore......Is this guy it? LOL

All For One & One For All!

"The Industry" Define please! I don't know what that means anymore......Is this guy it? LOL

quote:

Originally posted by D. Hartson:
Does this industry have any lasting standards? At times it doesn't look like it

Jersey is just pissed because someone is circumventing the law that they (the Industry) wrote & paid for.

Does this industry have any lasting standards? At times it doesn't look like it

It is the “creepy camp counselor” look if you asked me.

I don't think I will loose even one potential client to this service. What I offer and what they are offering are two different types of service.

Search for "Limousines," "limo," even "chauffeured transportation," and the Avis service does not even register on the radar.

There are very few actual "unfair advantages" out there, rather there are truly innovative services that attract a statistically significant percentage of existing markets, (Green cars may fall into this category shortly given the public proclivity toward environmentally friendly products these days.) and there are illegal operators who undercut legitimate operations by scooping up uninformed, or just plain cheap consumers, who aren't in my target market anyway.

The Avis, service, in my opinion, is neither of these, and thus no threat to my business. A chauffeur in an Avis Rent-a-Car.....sounds like wearing a tuxedo to eat at McDonalds to me.

I was out on run #2 last Saturday night and saw a nice White Excursion, about an 18 passenger. I about flipped when the "chauffeur" got out and I saw him wearing wrinkled Black pants, tennis shoes, sloppy hair and a White polo shirt that wasn't even tucked in. This guy was FAR from being professional. It's unfortunate but I rarely see any drivers even wearing a tie in my area.

quote:

Originally posted by D. Hartson:
Hey Gunny, This guy does look like a cabbie! Great etiquette.

Would think that a limousine operator would at least wear a decent polo & dress slacks for a photo op. Betcha he's wearing cargo shorts.

Hey Gunny, This guy does look like a cabbie! Great etiquette.

This has been tried before. Years ago Hertz offered this service in the large markets. It did not last a year.

I don't see this lasting too long. The first time something happens and the client is left holding the bag, It will be done. Sounds like a liability nightmare. And, are the drivers certified??

I'd rather trust my friends and falily to a licensed business for transportation than this kinda crap. What's a few extra bucks?!

Old saying goes... You get what you pay for!

quote:

Originally posted by TxLimoGuy:
Quite obviously Avis is not catering to that type of customer segment Dave. This type of arrangement from Avis would appeal to someone to whom the main deciding factor is price.

I don't think that price is the selling point as the "rent-a-driver" is a upsell to someone who wants/needs a rental to begin with.

Could be someone landing in Jersey who will be visiting accounts in NJ, NY & Ct with a flight out of Ct.

or

Someone from LA flying into NY to do business in the city then heading out to LI to spend the weekend with family & they need a car to get out there & run around.

Either example, it may pay to rent a driver for the NYC business meetings just to avoid the parking hassles.

I seriously doubt that this program will pull the standard luxury sedan client from limo use to car & driver rental even if a few bucks is saved.

quote:

Originally posted by TxLimoGuy:
Quite obviously Avis is not catering to that type of customer segment Dave. This type of arrangement from Avis would appeal to someone to whom the main deciding factor is price.

In the New York Times article, the customers used as an example are a group of executives doing a road show from Grubb & Ellis. This is the exact type of client companies such as Carey and EmpireCLS target. This is why I made the point I did.

Dave

Quite obviously Avis is not catering to that type of customer segment Dave. This type of arrangement from Avis would appeal to someone to whom the main deciding factor is price.

Since that does not describe my target customer I could care less about this. Limo companies who are merely taxis in disguise (in terms of rates) should perhaps watch a bit more closely.

quote:

Originally posted by Dave M:

Large limousine services are built for business customers. Well trained chauffeurs are only part of the equation. Avis is providing limousine service without the necessary infrastructure. How do they handle account management, complicated reservations, and events?

I don't see lucrative business accounts moving to Avis based on price. These accounts are accustomed to a standard of service Avis simply can't provide.

Dave

I recently read an article in the New York Times about this service. I thought the following paragraphs were telling:

---------------
Response to the new service has been slow. Mr. Carlson declined to give numbers on new customers, but said the figures were increasing gradually. The service has drawn similar lack of interest from competitors.

Charles Pulley, a spokesman at Vanguard Car Rental USA, which owns National and Alamo, said his company had “no plan at the present time to offer such a service.” Representatives from Hertz did not return calls for comment.

These tepid responses have left some industry experts skeptical about its success. Neil Abrams, the president of Abrams Consulting Group, a rental-car-industry research firm in Purchase, N.Y., said that he doubted that many business customers would want to change their routines to try a new one.
----------------

Large limousine services are built for business customers. Well trained chauffeurs are only part of the equation. Avis is providing limousine service without the necessary infrastructure. How do they handle account management, complicated reservations, and events?

I don't see lucrative business accounts moving to Avis based on price. These accounts are accustomed to a standard of service Avis simply can't provide.

Dave

quote:

Originally posted by David Merrill:
There was a Guy in Michigan who did this very same thing with Motor Coaches. He would rent you the Bus for X$$$ per day and you could drive it if you wanted or you could hire one of his Drivers from his temporary employment agency to drive the Bus for you.

As this article states, he was not subject to any regulation that the typical "bundled service" Limousine or Motor Coach service is subject to. The Drivers were Considered Employees of his company so he covered the Taxes and Comp. ( just like Merry Maids) but the renter of the Bus was responsible to insure the Bus even though he did have insurance on the Bus. It was a complicated deal but it just might be something for this industry to look at.

How about it some of you legal folks out there.

You're comparing apples to oranges. One company rents the vehicle another company rents the driver. 2 seperate entities, 2 seperate contracts. No different then if Mr Big Shot brings along a paid employee to drive the rental.

And I'm sure that the AVIS legal team has fine- tooth-combed issues of liabilities.

With the minimal scenarios whereas a traveler will opt for this double service provision, I see this as a non-issue for the luxury transportation market.

There was a Guy in Michigan who did this very same thing with Motor Coaches. He would rent you the Bus for X$$$ per day and you could drive it if you wanted or you could hire one of his Drivers from his temporary employment agency to drive the Bus for you.

As this article states, he was not subject to any regulation that the typical "bundled service" Limousine or Motor Coach service is subject to. The Drivers were Considered Employees of his company so he covered the Taxes and Comp. ( just like Merry Maids) but the renter of the Bus was responsible to insure the Bus even though he did have insurance on the Bus. It was a complicated deal but it just might be something for this industry to look at.

How about it some of you legal folks out there.