State of the Industry Today
WHAT IS THE STATE OF THE INDUSTRY TODAY?
Mobility depends on movement. As things have been slowly opening up, demand for our services has felt that. It’s not a lot, but there are positive signs. I pay close attention to what is happening in the larger travel and meetings/events/convention industries. I go by the old saying, “follow the money.”
Total travel output in the US alone is $2.5 trillion with 26% of that in the business travel space and 74% in leisure travel. As for live events, the total annual economic contribution of the meetings and convention industry is $907 billion, which generates $64 billion in federal tax revenue and $46 billion in state and local tax revenue. Additionally, live concerts and sporting events account for $35 billion a year. Those are very big numbers so you can bet those industries are working tirelessly to get things unstuck and when that happens, it’s pretty clear, we will be moving people again.
What can you do to bring business back in the “now”? Before people begin to travel by air, before people to go gatherings, they will first return to their offices and work space. Those people will be looking for transportation. Home-to-work transportation will be the first piece of mobility that comes back and perhaps some retail business. My friend called me last week to ask about a limo for her 50th birthday. She and friends are heading to Santa Barbara county from San Diego for wine tasting and fun. She said she was tired of being cut off from society and wanted to enjoy life again. That is a positive sign.
Chauffeured services that were squeezed by Uber and Lyft for the last 5 years have a chance to regain lost market share in commuter work. For now, the health and safety of people is on everyone’s mind. Corporations are willing to go the extra mile to make sure their employees are comfortable and with the state of public transport in this time of social distancing, we are a great option. I understand from speaking to operations, they are experiencing an uptick in long-distance rides. This is because people still don’t want to or simply can’t fly. Until the airlines and airports find their grove, people will travel longer distances by ground. People are afraid of buses and trains and opting to take cars. As time goes on, buses and trains too will defeat these fears and people will go back to mass transport. But for the time being, it’s too scary.
Speaking of fears, I caution you about overdoing it in an effort to be taken seriously with hygiene protocols. It’s important that we do everything in our power to work against those fears while interacting with clients in person. For starters, until your clients get close to your chauffeurs, they should not have a mask on, rather a big friendly smile. People must be able to read body language to be made comfortable. The masks – especially the black ones – are scary and people are fearful enough. If I had a luxury car company I would have masks that were as subtle as possible – or even whimsical like the ones offered on Vistaprint ( https://www.vistaprint.com/masks/.) Black is the sign of death and while you might think it looks cool, trust me, it’s a very ominous look and that is the last thing you want people to feel about your service in these frightening times. We must work creatively around service levels to lessen fears and the best way is to be happy. Drivers should text upon their arrival with a happy thought of the day and a cheery salutation. Think the opposite of serious and come up with your own unique first impression. Chauffeurs are your store front. You don’t want them to look intimidating but rather friendly. They are hired to help people relax and lift their spirits while bringing a sense of peace-of-mind. Drivers in situations requiring a mask at all times can use technology to help with that pleasant first impression. An iPad with a happy emoji is a very simple added touch and a memorable one that’s sure to make yor client smile.
Parting shot? To the operators of California and beyond, I remind you to limit the time you spend watching the news and stay focused on positive steps forward that ARE happening. Keep your prospective. This is an election year and the hysteria coming from the media is distracting. We need logic to drive us, not emotion. We will resolve this matter…we are resolving this. We know a heck of a lot more today than we did 4 months ago. In March, California Governor Newsom stated that there would be 2 million dead in California by June 1. There are a reported 6,000 out of 40 million residents who have reportedly died by complications exacerbated by Covid 19. This is GREAT information (not the death toll of course, just the stats).
Enjoy your weekend,
Sara Eastwood-Richardson
GCLA Code of Standards Introduced
The Greater California Livery Association’s Bold Move To Define a Transportation Culture with Credibility
We can all agree that the pandemic allowed for an industry reset. In the early weeks of March, my team alongside the GCLA board of directors, decided this was our time to reimagine a “new” luxury transportation industry image and overall brand. As the predominant organization representing professional transport to the 40 million occupants of California, we decided we needed to ask more of our members. We determined the time was right to overhaul our admittance policies and create the first-ever Code of Standards. While membership-driven groups are in tough shape right now, marketing a more stringent policy was a bold move. We believe it is a good plan and adds credibility and cache along with value to our organization. Here are the new qualifiers to being a member of the GCLA:
1. Member agrees to properly license their business(es).
2. Member agrees to carry the legal amount of business insurance including vehicles and workers compensation plans according to law.
3. Member agrees to carry legal amount of insurance coverage for all outsourced / insourced work performed.
4. Member agrees to carry and maintain proper permits and licensing for the state or country in which you operate.
5. Member agrees to honoring all insourced/outsourced work agreements with the fellow association members, including timely payments.
6. Member agrees to handling all member-to-member disputes arising from any misunderstandings quickly and through the GCLA Ombudsman's Committee.
7. Member agrees to refrain from unfair badmouthing or denigrating the GCLA brand or its members or board including the mal-purpose use of Facebook, Linkedin and other social media platforms.
8. Member agrees to disclose any conflict of interest to the GCLA / Ombudsman Committee at the time the conflict is known.
9. Member agrees not to use vulgar language, intimidate, threaten or physically ( including legally or monetarily ) abuse another member(s).
10. Member agrees to keep current with association financial commitments.
The Greater California Livery Association’s Code of Standards and Ethics embody our collective goals for guiding our interactions with one another as businesses, and with the greater public we serve. While these standards are no easily measured, we believe providing examples, definitions and goals do go a long way in helping all of us achieve a higher standard of awareness of our thinking process and the related behaviors that are the result. In addition to the aspirational ethic concepts outlined below, the Four Pillars of Standards and Ethics are:
The Maxim RRFH:
Respect (for yourself and others as individuals and businesses)- A high regard for yourself and others, and the resources entrusted to them, are the key things to be aware of in your daily operations and conduct. An environment of respect builds trust, confidence and mutual cooperation.
Responsibility (for your actions and recognizing the actions of others)- Taking ownership for the decisions you make, or fail to make, and the consequences that follow- is a key element of trust. Others notice this and are more likely to follow your lead in an environment of honesty, solution-finding, and forgiveness.
Fairness (the rules should be followed because adherence or violation affects/effects everyone)- Making decisions that are balanced, un-biased, non-favored, and aligned with the truth of matters and facts.
Honesty (certain truths DO exist, can be discovered, and should be protected)- Accepting the call to be truthful and act in a truthful.
Continuing on with our evolution for a better tomorrow, we now have a process for handling member grievances. We want our delegates to feel protected and cared for. We want our trade association to shine bright as the beacon of hope.
The Bylaw committee presented these changes to the board on June 12th and received a unanimous vote of confidence. We are going to rise up and come out of this trouble time a better, more professional and cohesive group of business owners to be sure. I am extremely proud to be able to share this with all of you.
Stay strong and be encouraged. We WILL make it through this – together.
Yours truly,
Sara Eastwood-Richardson
Cheer Up Buttercup - We've Got This
Time to Cheer Up
One thing I know to be true about this industry, we have a servants heart. I've never met a group of more caring, conscientious and sensitive people then in the chauffeured transportation community.
In my years with LCT, one of the things that gave me the greatest pleasure was combing though our awards applications and reading the hundreds of stories about their charitable deeds and acts of kindness from operators around the world.
It's time to dust ourselves off. We're chugging back to life, yes, but thanks to the political climate finding our smiles again will be hard fought and hard won. It's a toxic and very negative environment but YOU can change that.
Let's pledge to earmark an hour a day to connect with clients to do nothing more then offer our services and to do something that's helpful. For instance, you can offer a vehicle for their favorite charity. I promise you if your clients businesses don't have a charitable arm, the C level executives at those companies do.
If you don't have access to your clients, reach out to your community. There are local nonprofits everywhere that are shorthanded. At my home we have a traveling nurse and her son staying with us for three months. It's not much, but it's something. If everyone in our industry does one small act of kindness to lift another person up we will restore ourselves at the same time we will heal our economy so much faster. There's a lot to be said for attitude. The happier we are the more optimistic we become. People with optimism MOVE FASTER. We need to be energized to be able to think straight and have the fortitude to work our businesses back. People are getting depressed from all the bad news. Let's change that mood by doing good.
Get out there and help. Offer a hand to your customers, your friends, your community, even a stranger. Watch miracles happen.
Yours truly,
Sara Eastwood-Richardson
Airports and Branding - Are We Falling off the Radar?
Is Our Industry Falling Through the Cracks with Airport Branding?
FlyLAX.com has a beautiful website. There’s a nice tab called GROUND TRANSPORTATION INFORMATION. I clicked on it and here is what travelers see:
“There are several modes of ground transportation that operate at LAX to facilitate the movement of passengers and visitors to and from the airport.”
FlySFO.com is better. At least they actually include our niche on their site. Limos, alias chauffeured services, is bundled with taxi and ride-share under their GROUND TRANSPORTATION tab. However, there is only ONE “limo” company referred by SFO called or Sabet Transportation, better known as Teslaoncall.com. What’s that all about?
San.org, the international airport in San Diego forgot about us too but strangely, they didn’t leave out “walking or biking” under their TO and FROM options tab. Boo!
Making sure that this isn’t just a California thing, I checked out the busiest airport in the country – Atlanta. Much better. They do have a “limousine” exclusive tab. They do have a directory of services. However, the entire block of information is three sentences. I wish I could say the same for LaGuardia. If I had 3.50 reading glasses, I might be able to find a slight mention of chauffeured service, but since I don’t own a set of cheaters that powerful, I have to give New York’s main airport a fail on the industry’s exposure front.
This is an opportunity for our industry – especially now – to work closer with our airports. Help them recognize that our industry carries their First-Class passengers and that those people are major airline users and influencers. By leaving us out of their branding, they are shortchanging their client relationships with their top-tier travelers. At all touch points, our clients should be able to find us on signage, on apps, on websites. This is important. The squeaky wheel gets greased. Let’s take this slow period to do more marketing work with our airports. They need our services for their well-heeled travelers just as much as we need them.
Sara Eastwood-Richardson
GCLA Milestones in 2020
Honk, Honk! Beep, Beep! Toot Toot!
Team-GCLA spends most of its days, trying to figure out how to build your community. I like to use this “real estate” column in our e-news each week to share my perspectives on things going on of relevance. And to cheer you on.
Today, I want to toot our horn. It’s been just over three months since my team found our way to the GCLA “C” Suite. In that time, much has happened that is already having significant impacts. At this point, we are only setting the table. The feast is yet to come. We refuse to yield in the face of adversity and instead we forge full steam ahead in anticipation of an exceptional economic rebound in the months to come. Here are some highlights of actions we’ve accomplished:
Industry Firsts and Milestones:
GCLA adopted a first-ever Board of Directors “Code of Conduct.”
GCLA adopted a first-ever “Code of Standards” for membership.
GCLA created the first ever California Transportation Covid 19 Impact Study for CPUC.
GCLA hand crafted an appeal to Congressman Kevin McCarthy and had it personally delivered.
GCLA developed it’s first-ever E-News Weekly.
GCLA created its own proprietary Covid-19 Resource Center, housed on GCLA.org.
GCLA.org was completely redesigned for a more contemporary and polished store front.
GCLA – TV was launched. Our first video is in final edits.
GCLA created the We Move California marketing campaign, video is in the works now.
GCLA developed a new database to include more than 7,500 owners of transportation.
GCLC unveiled its first-ever comprehensive DIGITAL SPONSORSHIP media kit, with dozens of exclusive offerings for suppliers and operator alike. Check it out here: https://www.gcla.org/sponsorship-opportunities
Just like you, we had a very different vision when we pulled up our chairs on March 1, our first day working for you. By mid-March everything changed and all of our plans have to be revised. Sound familiar? Just like you, we refused to give up. We committed ourselves to finding solutions and delighting in even the smallest accomplishment. I hear operators who say they had a good week because they booked 5 trips compared to 1 the week prior. That’s what I am talking about! We are in this to win this. My team and your board of directors have a summer packed with more initiatives to help you heal, and move forward. The best is yet to come.
Stay positive,
Sara Eastwood-Richardson
Sticks & Stones
Sticks and Stones Will (not) Break Our Bones…
As far back as humanity can be traced, impassioned people have acted out in violence to make their frustrations heard. There are not a single “people” on this planet with clean hands on the matter. Our country’s famed quotes like, “Give Me Liberty or Give Me Death,” are at the epicenter of our very being. When the masses get riled up, riots are predictable. History tells us this story over and over and over again. I don’t condone this behavior. History has also shown us how destructive it is to society. Whatever the angst, it does not matter. Violent behavior masks the message. In plane speak, it distracts from the truth and solves not a thing, including making looters feel better. On the converse, acts of violence make negative emotions escalate not de-escalate.
I am sorry to see our country burdened with more trauma when we are all so ready for “something” positive to happen in our lives. I want to remind you that we are in a dignified industry. Luxury transportation is a means of servicing the needs of high net worth individuals, their families, their companies and more. Take your eyes off the nonsense and focus on the main goal you have before you which is moving forward in a positive direction, driving your businesses. Shake the news off and get back to what matters to you. The pundits say business will not return for another year. Based on what? No one - hear me - no one knows what they are talking about factually because this is new territory. Everyone is speculating and frankly throwing sticks and stones. There is another side of this coin, the one that says pent up people are excited to get back to work, travelers are chomping at the bit to break free to find another adventure, sales people and business road warriors are counting the minutes to get back to their routines, and the beat goes on. Suffice to say, I think the market is going to come back fast and furious.
I also contend that there are some strange things a foot this election year that are hard to ignore. There are plenty of sticks and stones being thrown at the cogs in the US machinery – we all can see that. My advice to you is to steer clear of the media as much as you can. Focus on your business. Focus on your comeback. Focus on your money situation (1/3 of the PPP money from round 2 went untouched). Focus on your community. There is strength in numbers and that’s what the GCLA is for and there’s no mistake that we are making positive things happen for you.
Let’s keep our eye on the prize,
Sara Eastwood-Richardson
Social Distancing: Not a long term fix
The Incorrect Assumption that Social Distancing is a Long-term Solution
Yes, for those who have no financial worries, stay-at-home orders offer a special opportunity to spend more time with family, simplify life, engage in hobbies, binge watch TV shows, get ahead at work, and so on. For the vast majority of people in the “real world,” social distancing cannot be our “new normal” into perpetuity. Isolation is simply not sustainable nor realistic—instead a very temporary band-aid, maybe.
As I watch industries try to recreate their entire business models to adjust to social distancing practices, I grow more and more concerned that we are trying to fit a round peg in a square hole. The vast majority of the industries in the hospitality, travel, transportation and live event industries employ hourly workers—they are our backbone to survival, yet they are the most vulnerable in all of this.
Stefanie DeLuca and James Coleman, Professors of Sociology & Social Policy at Johns Hopkins University have this to say about social distancing:
Social distancing will save lives, perhaps. However, the economic costs are staggering. It is well-documented that economic downturns not only cause human suffering due to scarcity, but also lead to health problems and increases in mortality. In short, the virus is lethal; but so is poverty.
In the current climate, this burden is not equally shared. To get a sense of the problem, consider that many low-income workers live hand-to-mouth and are housing and food-insecure even when the economy is roaring. Even before COVID-19 hit, only 61% of all American families had $400 of emergency savings. Many low-income workers are not salaried, but work hourly or on commission/tips.
In the short-run, closure of businesses, lack of work for hourly workers, and layoffs quickly deplete resources of low-income families, making it impossible to meet their most basic of needs. For many low-income parents and children, leaving the house to go to work or attend school provides a safe haven that can ease tensions in overcrowded homes.
Given the uneven burden, a concern is that long-term quarantine or social distancing measures are unsustainable, in part because the costs borne by disadvantaged segments of the population are too brutal. However, it is also clear that the consequences of business-as-usual in the short-term versus long-term must be dealt with.
Right now, we must recognize that we cannot expect the most marginalized among us to bear the greatest costs of social distancing for weeks or months on end. The stimulus bills, at best, buys struggling families time. Don’t forget, those who share this burden are our direct employees, our labor pool. That time is not indefinite. At some point we need to resume normal activity, including being able to serve groups and to congregate.
How do we un-ring this bell? Education is a good start. Rather than cave to the immediate fears surrounding COVID-9 and building permanent policies we all know we can’t afford to do, we must direct our focus on crafting a post-COVID-9 plan that restores service business models to realistic norms. We must work with all industries that also cannot sustain social distancing policies forever. These include much of what feeds our ecosystem in chauffeured transportation—restaurants, lodging, air charter, weddings, meetings/conventions and entertainment.
Sara Eastwood-Richardson
Filthy Ride Share Vehicles
SURVEY SAYS: RIDE SHARE VEHICLES ARE FILTHY!
A friendly operator in San Francisco reached out to me yesterday to chat about what he is already hearing from his business clients. The message is coming in loud and clear: travelers want reassurance that vehicles are bug free! Clean is definitely the NEW safe. I wrote an opinion piece to the GCLA membership a few weeks ago with that very title. Now, my friends, it’s coming to light just how important cleaning protocols will be for all segments of our lives—the entertainment, travel and mobility industries, even more so.
There is always a silver lining. Ours is in a golden opportunity to win back lost business traveler work to Uber, Lyft and the ride-hail business by marketing our industry as one that is not only safe but certifiably so. We are the sector of ground transportation that is BEST equipped to control our vehicle environments and he/she who can sell that assurance, wins. With the help of the global sanitation industry who is certifying hotels, airports, event centers and more, we are working in overdrive to get the first transportation sanitation program managed by a scientific third party and we are almost there—in fact we even have a name for this program. Getting to this place was no small undertaking. If all stays on track, we will have a roll out transportation certification for the industry within two weeks. We are confident this will appease the California government, and way beyond to our national and international administrations.
How great is our timing? Well, pretty darn spot on. Recently Netquote.com, an online insurance aggregator, published a Driving for Germs study. The article was written by Jacob Geanous of the BBC. Here is his report posted Monday, May 18th:
Insurance aggregator Netquote took swabs of the most commonly touched areas in ride-sharing vehicles such as doors handles, seat belts, and window buttons. They also swabbed the same spots in taxis and rental cars to determine which was dirtier for their ‘Driving with Germs’ study.
The study found that ride-sharing cars had an average of six million ‘colony-forming units’ (CFUs) of bacteria per square inch on those surfaces. Rental cars were found to have approximately 2 million CFUs and cabs averaged just 27,593 CFUs.
For some perspective, there are 171 CFUs on an average square inch of a toilet seat. A toothbrush holder can carry up to two million CFUs and a coffee maker carries an average of 32,000 CFUs.
I am giddy with hope for your businesses. I pray that beyond all this tragedy is a rebound for your businesses that will be exceptional. We are definitely moving in the right direction so stay tuned for more specifics to follow.
Sara Eastwood-Richardson
Pandemic Insurance Matters
Starting Your Engines – Time to Talk Insurance
Governor Gavin Newsom relaxed some statewide restrictions last week but that was not enough to quell the ever-growing frustration by Californians who want to get back to work. Nearly 30 California counties are threatening to jump ahead of Governor Newsom’s orders and open up. Meanwhile, Los Angeles Mayor Garcetti was forced to walk back a statement his county public health director Barbara Ferrer made on Monday that suggested the Coronavirus lockdown would continue for another three months. In another act of defiance, Tesla CEO Elon Musk reopened his plant in Fremont this week as well.
With more than 4 million people in California on unemployment and a nearly $55 billion budget shortfall for the state, the pressure is on for the state to open the economy faster than leadership is comfortable with.
According to CA-Gov there have been 1.1 million residents tested to date. Of those, just under 7% have tested positive for COVID-9 (73,000 cases). As of May 14th, of those that are carriers of the virus, a little under 4% (3,000) have died due to complications that were exacerbated by the virus. California has 40 million people so all things being equal, the data that CA-Gov has shared means that 7% of our population is likely carriers, or 2.8 million. All lives are precious but at some point, we have to ask ourselves are we winning the battle to only lose the war? I think that is the sentiment being spread all over as more testing and data makes things clearer to all.
What does this mean for us? Cutting through the clutter of all the unknowns, we know these truths. One, clean is the new safe. Sanitation protocols are a must. GCLA is working hard to fine tune a standard for all of you which will happen in the next two weeks. Messaging to the traveler must be aligned with new priorities and new opportunities. I will reiterate what I shared weeks ago. We have an emerging opportunity to recapture lost market share to ride-hail enterprises. We have a chance at procuring more contract work in the “people-mover” space including commuter, non-emergency medical and courtesy shuttle. We know that local business and leisure travel will come back before international travel does. Meeting planners will find a way to reconvene, beginning with selecting destinations that offer fresh air spaces. We are in the sunshine state and as restrictions for meetings relax, expect more open-air gatherings to be the trend which we have an abundance of compared to any other state. We will rise to the occasion, pardon the pun.
If you furloughed your fleets, start getting quotes now for insurance. I say this because you must have insurance to reactivate your CPUC license. While the CPUC announced an expedited plan, which waives the 30-day wait period, you still have to have your vehicles insured before you can get your TCP. You don’t want to leave this to the 11th hour. Give yourself plenty of time to ensure you are on the right side of negotiating your best insurance rate and plan. All things are changing, including insurance.
As always, I am thinking of you in these stressful times. My team is on overdrive to help you recover as fast as possible. Remember to lean on facts and stay clear of all the rhetoric and keep a positive attitude.
Reach out to me any time. We got this!
Sara Eastwood-Richardson
GCLA Member Benefits: We Move California
Here’s some good news coming out the great state of California. It was just announced this week that Gilead Sciences based in Foster City, California, concluded a major study, which began February 21, of the antiviral drug Remdesivir and found it can help hospitalized patients with COVID-19 recover faster. Dr. Anthony Fauci hailed the findings, released yesterday, as "quite good news. The data shows that Remdesivir has a clear cut, significant, positive effect in diminishing the time to recovery," Fauci said during a meeting between President Trump and Louisiana Governor John Bel Edwards. This is highly significant.
On the homestretch of recovering from this nightmare, you should know that your GCLA leadership team is hard at work doing all we can to expedite the return of business.
We are partnering with the CPUC on more research projects and outreach to the entire state of transportation professionals. First up, we have sent over 6,000 letters (on GCLA letterhead) to operators in California asking them to sign it and send to their district legislators. We are pushing for extended relief on office mortgages and bank-backed vehicle loans.
We are expanding our research and data. After we sent our COVID-19 Industry Impact Study to the CPUC, they appreciated the data so much they asked us to continue conducting more studies and expanded market research. Facts are powerful. Data doesn’t lie. Our information is making a substantial impact, according to our lobbyist, Gregg Cook. To all of you who are responding to our surveys, thank you!
It’s time to talk about cleaning protocols. Last week I reached out to the Hotel & Lodging Association after seeing an announcement that they are endorsing cleaning protocols by way of ACCOR and the GBAC Gold Star certification, a standard they want the hospitality/travel industry to adopt. It is everyone’s hope that one recognizable sanitation certification will be accepted in the new era of “Clean is Safe.” Hyatt announced today that their GBAC Star program will become effective this next month. I had very productive meetings this week to ensure that the GCLA is brought into the fold of these certifications. This will become a very important membership exclusive for GCLA in the near future. The GCLA board meets on May 15th and will be presented with recommended action steps. Until then, please stand by.
We are launching an extensive public relations and marketing campaign called WE MOVE CALIFORNIA (Think, “Got Milk?” campaign by the dairy farmers). We are working on a cool video, featuring YOU, that will be sent to every association involved with our industry here in the state. This is an advertising program for using our services, designed to rev up our industry brand and attract business for you.
We are also updating GCLA.org. I ask that you please check it out. The site is a work-in-progress. Your ideas are welcomed. While visiting, please take a look at our COVID-19 Resource Center. It’s pretty cool. Next up, we are launching a vodcast program called On the Move With…These will be splitscreen format of interviews with me and thought leaders/experts on hot-button topics. We are also ramping up our webinar series focused on training and demonstrating products and services designed to make you money or save you money. Additionally, we will archive our exclusive research and whitepapers that are yours to access anytime. However, the new Education & Research area is a MEMBERS ONLY section of the GCLA.org site.
GCLA operator membership is $6.25 per month, the cost of a Starbucks pastry and one cup of coffee. We will soon be launching the Ditch Your Donut Membership Campaign. If you have not renewed your membership, please go on GCLA.org and renew. We need you to be all-in with us so we can pull through as an industry united.
My parting shot is this. I know most small businesses did not get the financial help via the PPP and EIDL programs and are very upset. We must try our best to hold on and know that this has an end to it. Nine states have re-opened. Fifteen more are on the “re-opening soon” list, including our bordering state of Nevada. For California, it is just a matter of time. You’ve got many friends in the unity of the GCLA and with me. Don’t hesitate to contact us if you need anything. We ARE in this together.
Sara Eastwood-Richardson
Clean is the New Safe
Clean is the new safe
There was an interesting article recently in Fast Company written by a futurist who sees this pandemic as a very real turning point for transportation in the future. The article goes on to describe all the great lengths transportation businesses will need to take to make their business models work. Of particular interest to me was the part about ride-hail companies. Think about it for a minute. The hail-model of transportation–from a germ standpoint–is fraught with peril. They move random people who come in and out of the vehicles with no duty of care, no insurance of sanitizing protocols, no quality control. Now, think about the chauffeured transportation industry. We have ALWAYS had vehicle cleaning protocols between runs. It’s not a big deal to add a few new kinds of procedures to what we are already set up to do. The article mentions new technologies such as touchless doors but just how in the world is Uber or Lyft going to be able to deliver that product consistently? On the other hand, our chauffeurs handle the doors so for our part this is easy to ensure.
My final takeaway from reading this article (and others similar to this) is that we have a golden opportunity to reclaim the lost “mid-tier” market of business that went to Uber and Lyft simply for being who we’ve always been—high end services. CLEAN is the NEW SAFE. Coming out of this mothball, more consumers will be frightened by interactions with strangers. We have the upper hand here. Our chauffeurs are not random drivers. Our clients know where to find us. We can easily prove our cleaning protocols. Let’s imagine that somehow, we limp through this terrible time only to find what is waiting for us is a new world of consumer consciousness that opens doors for us. Envision you are talking to travelers who do not feel safe (yet) to fly but are willing to travel by vehicle to get from place to place and they (or their employer) chooses YOU over a ride-hail company because you can prove your service is clean therefore, safe. Clean saves lives. This is our new reality and our industry is better poised to sell “cleanliness” than any other transportation vertical in the world.
In the meantime, Silicon Valley is already fast at work for new technologies for the ride-hail industry to include in-vehicle cameras that see in advance who else is in the vehicle pool, including thermal cameras that detect if other passengers have fevers or other indications of disease. Talk abut Big Brother! If our clients are uncomfortable with the drive cams mounted on our windshields, just think how they’d feel getting into a car loaded with virus sensors and backseat cameras? I argue that the tech world’s utopia is our client’s dystopia.
As the markets begin to re-open (the governor of Georgia is opening up the state this weekend), we must start to really imagine the opportunities before us. On this note, we will be offering free webinars, beginning in May. Our first one will be a training video on vehicle sanitation procedures. More on that next week. I love the emails from everyone. Please keep ‘em coming!
Sara Eastwood-Richardson
GCLA Impact Survey Results
Dear Friends….
Let me start this note by thanking you for responding to the Impact Study survey last week. We are now able to use the data to build a case for extra state financial concessions. We are working hard to “stand out” in the long line of industries pounding on the states door for help in this current business crisis. The squeaky wheel gets greased so that is precisely what we’re committed to doing and FACTS matter.
I appreciate that so many operators gave us personal feedback too. The resounding sentiments are:
Why hang in there? The harsh reality is that there really is nowhere to run. Outside of a small number of protected industries, the majority of us are all suspended in space right now. With that truth, we all must “hunker down” and focus on survival. How to do this? Find every means of revenue possible (including the loans and grants now available via the CARE Act) and reduce your expenses to the bare necessities. On the expense side, by now you should have plenty of “To do’s” to work from, but if not, reach out to us at GCLA headquarters and we will get you the help you need. On the revenue side, focus on finding ways to generate money with the few vehicle(s) you are operating – helping lost clients with deliveries and other services; finding new clients that are on the “Essential Business” list. There is one operator in California I know who is running 50 buses a day for hospitals. If your fleet is completely shut down, I urge you to seek work in the delivery industry. Amazon and others are hiring drivers on the spot. Side hustles are what saved a lot of displaced workers during the Great Recession, so keep your options open.
Insurance – If your vehicles are financed, the lean holders will require a minimum amount of coverage in case, say a stored vehicle caught on fire. If you own vehicles, you may be able to store them for minimal coverage (but you still want some insurance in case something happens to the vehicle while in storage). Depending on the relationship you have with your agency, you may be able to get payments deferred for up to 6 months, but it comes down to how long you have been with your agency, your track record, your fleet value, etc. The transportation insurance industry is flush right now thanks to Shelter-In-Place. The lack of vehicles on the roads has radically reduced vehicles claims. Maybe you can add this to your argument.
Big affiliates freezing their money and not paying for services performed – The simple version is, if the service was performed to the satisfaction of the Network and not in dispute, they owe for services rendered. However, you can’t squeeze blood from a turnip. The Networks are in dire straits and do not have a way to pay their bills. As much as many of you badly need that money, for now don’t wait on it to save you. Focus on what is in front of you and what you can control. This will get sorted out once we know when our economy can resume functioning. Networks depend on your businesses for their own livelihoods. As frustrating as it is, try and be patient. When business travel resumes your accounts will be reconciled.
Refunds – Many of you are refunding for cancelled trips. I spoke to the leadership at the California Bus Association and they have been successful in negotiating “postponements” and not cancelled trips. I realize we serve a different transportation niche, but I also think that we should try our best to negotiate before refunding and offer incentives for the future, like a voucher system.
Lost clients – Most everyone is in a limbo stage of business right now and trying to stave off more drastic measures including closing doors. So, for now, just make sure you are calling and writing to your customers, including all your farm out/industry relationships. Helping people get through their day by simply calling to say you are thinking of them will go a very long way. Educate yourself on ZOOM. It’s easy to learn and here to stay. YouTube has tutorials. It allows you to see who you’re talking to via desktop. It’s a game changer in the relationship business. And, that’s what we’re all about in chauffeured services.
The U.S. travel and tourism market generates almost $2 trillion dollars. It’s an industry on its knees. It’s also one that is near and dear to the heart of President Trump. Be thankful that our niche is directly tied together as the connection component to air and hotel. Travel is the FIRST on the list of industry’s to be reinstituted. C.A.R.E. is designed to aid small businesses like ours while the airlines, hotels and restaurant chains work with our nations leadership to get unstuck as quickly as possible.
Let’s stay focused on what we can control and try to relax for another week. Changes are happening every day. Don’t go too far over your skies right now.
My parting shot…we invoiced the entire community in the state of California including operators and suppliers. GCLA memberships are the least expensive I know of. My team of 6, plus the board and your committees are working around the clock on your behalf for you. While many associations are shuddering, we are trying to stay open but MUST have 100% support. Our base membership fees are $6.25 a month – that’s less than a coffee and Danish from one trip to Starbucks. The timing is terrible for us to be passing the hat around but we are reliant on member and sponsors to keep the doors open. Thank you to those who paid. If you need another invoice or have questions, reach out to me.
Peace be with you and your families during the holy holidays.
Sara Eastwood-Richardson,
Executive Director
The Challenge Ahead - An Opportunity to Thrive
Dear GCLA members,
First let me say how sorry I am that you are faced with such challenges in what should have been a great spring season for all. On a bright note, as I type, I have learned that a vaccine, which worked for Eboli, is successfully curbing this new virus in lab tests. Fingers crossed that this is a turning point. As with most viruses, warm weather is not a friend so thank goodness we are approaching the warmest months of the year. The continued efforts to quarantine our state and the outpouring of good people doing good deeds is paying off as well. Mind, body, and soul – we have to stay well. Be careful not to watch too much news. Instead, watch comedy and read positive affirmations (check out https://www.successconsciousness.com/index_000009.htm). Eat healthy and get exercise, even a few jumping jacks in your living room will make a difference. Do nice things for those around you – family, friends, co-workers, clients, neighbors or even strangers. Dr. David Hamilton writes a great article on the healing powers of kindness https://drdavidhamilton.com/how-kindness-can-heal-the-body/.
Our services are considered an essential business as long as we are helping those industries and people within them that are considered essential. That includes non-emergency medical transportation – so find out if any of your clients have chronic conditions and need a ride (i.e. physical therapy, dialysis, eye appointments) for medical treatments. You will likely be amazed to find out how great the need is out there. Here is a link to a comprehensive list of “essential workers” for your review. Look to see if any opportunity exists for you to be of service. There is work out there. Gary Bauer, Bauer’s IT in San Francisco is running 50 buses a day – all of them on the “essential” list. Forbes put out an article listing the worker categories https://fortune.com/2020/03/20/essential-workers-government-list-employees-coronavirus/
I have been in this industry a very long time running LCT. I was hired right after the Savings & Loan crash which wiped out the banking industry. In less than 18 months, 4,000 operators went out of business and 35 limousine manufacturers closed their doors. For two years, we had to clean up the rubble before firing up the engines. After which, the industry went through a boom that lasted 7 straight years. 9-11 was not a market crash but something maybe worse – our free society watched in horror as commercial planes were used as weapons of destruction on our own turf. That was actually worse than this virus pandemic because it was an act of violence and evil at the hands of mad men. I remember the aftermath very well. It was as if the world ended. That is, until America rallied together in unprecedented fashion to once again soar to new business heights for another straight 7 years. Next up, the housing bubble burst and much like before, the banking industry was decimated. The Great Recession was on. I remember being called to a meeting with Ed and Ty Bobit who asked me if I thought the limo industry could survive this. Without hesitation I said, absolutely!
We did survive and in many cases, we thrived. We have prevailed through the craziest of circumstances for as long as I have been here because we are tough. That resilience, that scrappy street-smarts is what will carry you over this hurdle so you hang in there!
Also, I need stories that can be shared with our membership – ideas on what you have come up with to solve a problem. Email me (sara@ras-int.org) so I can spread the word and help keep you all connected to one another. There’s 40 million residents of California. There’s need out there for your services now and into what will be a full recovery.
Respectfully,
Sara Eastwood-Richardson,
Executive Director