Disruptors have upped the game by bringing rates down and putting pressure on the rest of the industry to update technology


Also, Uber and other apps are disrupting the industry. These are technology com- panies, not taxi operators, and corporate concerns include a lack of guaranteed operating standards, vetting of drivers, training and insurance. “A lot of companies use us because they


don’t want their people driving after a long flight,” says chief executive officer of Tristar Worldwide Chauffeur Services, Dean de Beer. “It doesn’t make sense to employ a service to put someone in a car with a driver who has had very little sleep.” And as Carey International vice-


president Greg Mendoza points out: “Statistically, the most dangerous element of a trip is the travel by road.”


INDUSTRY STANDARDS This raises duty-of-care issues – which, to many companies these days, comes equal first place with cost savings, if not ahead of them. One standard of which the main players in the transportation industry are proud is the training of their drivers, ensuring reliability and consistency; plus monitoring to ensure drivers have a number of breaks and do not exceed prescribed driving hours. “We work very closely with our drivers and our chauffeurs to ensure that it’s a good place to work, so that we minimise the reasons to leave and continue to attract the right quality of people coming in,” says Mendoza. “We can do that very well because in London, for example, all our chauffeurs are full-time employees, which is unusual in an industry that relies heavily on contractors.” The majority of Tristar’s drivers are also


employees and the recruitment process is rigorous, with assessments during


72 BBT JULY/AUGUST 2015


induction and ongoing checks once drivers are taken on. “Our investment pays off because we have very low staff turnover, so we can give the consistent, reliable service clients like,” says De Beer. One Transport, part of the Mountview House Group, uses around 500 opera- tors nationwide, providing the best part of 70,000 vehicles throughout the UK. “Coverage and service levels are important and we give an agreed and agreeable rate,” says chairman and CEO Geoffrey Riesel. Operators go to great efforts with partners abroad, too. Carey International had large demand in Mexico for a long time and it took about four years to find a suitable partner to work with in Mexico City; that involved several trips to visit potential suppliers, going through every aspect of their service and bringing them up to speed where necessary. Tristar has offices in the UK, US and Hong Kong, to ensure that suppliers are vetted by people who are close to the regional geography and culture. And Groundscope’s 450 service providers worldwide, soon to grow to more than 800, have been vetted by the company, “to ensure that the service we are providing is meeting the same standards, regardless of where the business traveller is”, says managing director John McCallion. The company also provides clients with bench- marking data from 150 cities worldwide, comparing its tariffs with the market rate. Some operators point to further down- sides to Uber and similar apps, such as the inability to book ahead, book for someone else, or get fixed quotes for trips or VAT invoices – and they say it is not clear who is responsible if there is a complaint. Contracted rates are another issue:


“Uber’s business model does not work for business or corporates, especially the surge pricing, which means fares can vary at peak times by as much as 800 per cent,” claims Riesel. “With One Transport, the price the client contracts is the price the client pays. “In the taxi and for-hire business, the bad always drives out the good in a race to the bottom,” he says. “Using reliable, experienced, safe, quality suppliers deliv- ers a quantifiable return on investment. The cost associated with using cut-price providers – such as missed meetings and flights, and improbable charges – is also


Prioritise your ground transport programme


1 2


3 4


Quantify your requirements.


If drivers are not directly employed, how do suppliers vet and monitor them?


Check terms and conditions for rogue elements.


Technology, especially booking tools, are commonly provided by suppliers; but ask, for example, if they have been integrated with corporate tools.


5


Negotiate penalties – for example, the cash amount for ten minutes late, half-an-hour late and so on.


6


Identify and list clearly your MI requirements.


probably quantifiable.” And VAT invoices are a given, which they are not if travellers use local minicabs, though VAT recovery is still a thorny issue outside the UK. More positively, disruptors have upped the game by bringing rates down and putting pressure on the rest of the industry to update technology. There are apps serving the corporate sector, such as Hailo for Business, which offers a no-fee, no-contract tool (and website) with access to 15,000 black cabs and executive cars. Cabs can be booked up to four weeks in advance and the company’s business portal allows it to charge to a central account and automatically log journeys against cost centres or other references. Hailo can provide a full history of drivers booked and transactions made.


PERCEPTION PROBLEMS Chauffeur-drive does not come without caveats, and the perception problem that prevailed during the worst of the recession, around 2009-10, lingers. Riesel says clients ask for chauffeur-driven cars “probably less than in past years”.


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