DriversNow: Bridging the Affiliate Gap for Operators of All SHAPES and SIZES

By Susan Rose

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


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