We've
come a long way as an industry, thanks in
large part to open-minded operators thinking
outside the box and embracing new business
models.
The industry has been-and continues to be-greatly
affected by technology, which makes many business
practices safer, more efficient, and overall
more profitable. And while online services
have bridged the gap between operators and
consumers, few other sites have effectively
connected operators with other operators in
real time, with real available jobs. When
cofounders Moe Sattar and Andre Polakoff launched
their vendor-to-vendor network site, DriversNow
(www.driversnow.com), this past January, it
opened the door to a platform that didn't
really exist online for limousine operators.
"We're a national ride exchange that allows
companies to farm out work when they are busy
and farm in work when they are slow," says
Sattar. "It gives operators access to a huge
market that was neglected in the past. We
don't create competition, just new sources
of work. We allow them to better exchange
rides safely and securely so they can maximize
their fleet usage and farm-out revenues."
This model is a different way to expand service
to cities nationwide without following the
"traditional" affiliate vetting process of
finding a local company, scheduling a site
visit, determining if reservations systems
are compatible, negotiating rates, ensuring
standards, and potentially offering work sometime
down the road. The time-consuming vetting
process in this case is done not only by DriversNow-which
thoroughly checks for the proper insurance,
permits, and vehicle registration before accepting
an operator-but by the other companies in
the network as well. A user agreement is signed
to prevent poaching customers, and there is
a rating system-similar to how eBay buyers
and sellers can rate their transactions-that
keeps both parties honest. If a company accepts
a job then declines because something better
came along, that counts against them. "Nobody
wants that bad rating," Sattar says, which
can be grounds for removal from the site.DriversNow
also leverages two major business expenses:
offering nationwide service and maintaining
a diverse fleet. Operators can still book
a job with their customer even if they don't
have the requested vehicle or if it is in
a different city. "If a limo company does
not have a vehicle available to do the ride,
[he] calls around [to his] affiliates to find
who can cover that ride," says Polakoff. "With
DriversNow, instead of calling [he] can post
a 'real job' and find all available operators
that have the right vehicle in the right location.
For example, a customer called and asked for
a party bus for 20 people. Your party bus
can fit only 18. You take the reservation
anyway, quote the customer $1200 and post
the job on DriversNow for $1000. Another operator
with a bigger party bus picks up the job and
you made $200 without any effort on the ride
that you would have declined." Posting jobs
on DriversNow is free for the farm-out company;
the company that accepts any farm-in work
pays a monthly fee as well as a small fee
for each job booked. Payment is only activated
after the first job is picked up, which eliminates
any risk in getting involved in the network.
The job listing includes the price of the
trip, vehicle type needed, date, number of
passengers, and any special requests, and
an alert is sent out to all companies that
match the profile. The farm-in company can
either apply for the job, ignore the listing,
or communicate with the original poster to
suggest an alternative vehicle or negotiate
a different price. By listing the price upfront,
the companies in the network essentially police
themselves to prevent low-balling. If an operator
isn't offering enough for the job, no one
will apply. The farm-out company also stays
in control of which operator takes the job,
and the mutual contact information is released
to both parties once the job is filled. When
registering with the site, an operator sets
availability based on days of the week, vehicles
in fleet, and metropolitan area, and it can
be updated at any time to reflect current
obligations. The cost of the trip and the
exchange of money are then handled between
the operators, not DriversNow. And unlike
being part of an affiliate network, where
an operator may fear saying no to an offered
trip from another operator, the company only
applies for jobs that management knows it
can handle. "Through DriversNow, I found an
easy and convenient way to increase my revenue,"
says user Fred Sidaross of Jade Limousine
in New Jersey. "[I like that] I have no obligation
to accept all jobs, but only the ones that
fit my schedule." "Instead of deadheading
back from an airport drop-off, an operator
can pick up a job off of DriversNow, pay the
fee, and actually make money on the trip back,"
suggests COO Gary Yip. Sattar and Polakoff
also work with a board that includes business
heavyweights such as Yip, who has a background
in event planning; Steve Bernstein, CEO of
Oppenheimer Investments Asia; and Moman Ali,
also Sattar's brother, who helped to create
one of the leading financial trading platforms-which
was sold to eTrade for several hundred million
dollars a few years ago. Together they conceptualized
and developed the DriversNow site with the
intention that it could be navigated by anyone,
even the most technically challenged. "The
site was created with the lowest user's ability
in mind; we designed it in a way that anyone
can use the system without having to ask questions."
Operators can even use their iPhone, PDA,
or smartphone to access the site. Not that
they mind questions; on the contrary, they
welcome them. The staff regularly communicates
with those in the network, especially the
group of core companies that helped to launch
the site back in January 2010. When a change
is suggested, it is often implemented immediately.
"We want our users to feel like they own the
site," says Sattar. "Our philosophy is that
we have two ears and one mouth, and we have
to listen to our users. That's why each feature
and every improvement to our site is a suggestion
from them. The day the site stops evolving
is the day we close it down." Although DriversNow
was officially launched in the New York and
New Jersey area, it has since expanded nationwide
to major cities such as Los Angeles and Chicago
solely through word of mouth. By the time
it initiated its marketing campaign in June,
the network already had several hundred users.
The DriversNow team will also exhibit at The
Limo Digest Show in November as well as sponsor
the International Food &?Wine Fest on November
8 at the Show. "I've had operators say to
me that they wished we had started this 15
years ago," says Sattar, who also uses the
site for his other ventures. Sattar runs a
non-profit organization called SafeRides that
links drinking passengers with transportation
and additional incentives like free admission
to clubs-all in the effort to prevent drunk
driving. He also uses DriversNow for farm-out
work. "What a nice concept," says user Max
Osman from Max Party Bus in Fairfield, N.J.
"The jobs that I get from DriversNow are like
[finding] money walking down the street. If
you're stuck with a job that you can't cover,
they will cover for you. This is a no-brainer."
LD