Chosen Payments Prompts Multi-State Fraud Investigation

Chosen Payments, was recently contacted by a limo operator in New Jersey who recently incurred combined losses of about $4,200 in repeated occurrences of fraud perpetrated against them.

On March 8, Chosen Payments was contacted by Deanna Gulino, owner of Gem Limousine Worldwide to report that someone had used various names and credit card numbers to fraudulently book transportation primarily between LAX (Los Angeles International Airport) and a residence in the Griffith Park area of Los Angeles.

Between Feb. 17 and Feb. 23, the suspect initiated rides that lasted for several hours and included stops at The Project, a swanky nightclub on Hollywood Boulevard, The El Rey Theater, and a jazz club as well as stops at private residences.

The suspect used a mobile app to place orders directly into Gem’s Santa Cruz software system. Upon completion of the order, the credit card was declined each time.

After learning of this situation, Chosen Payments immediately contacted Detective Michael Gentry with the LAX Police Department since the theft technically began and ended at the airport where transportation services originated and concluded.

Chosen Payments advises operators to pre-authorize a credit card unless a client is an established client of the company to avoid such losses. Additionally, Chosen Payments would like to share information specifically for Los Angeles based operators who might find themselves in the same situation as Gem is no longer accepting these orders.

The suspect uses the following names: Aren Carter, Aren Green, Jason Friedman and Paul LeRoy. The most frequent addresses for pick-ups and drops offs are: 6459 Rodgerton and 822 No. Formosa in Los Angeles.

Should any operator take an order that may be associated with this suspect, please contact Detective Michael Gentry with the LAX PD at (424)646-8351 or contact Jim Luff at Chosen Payments at (805) 427-9180.

Keywords

California operators   Chosen Payments   credit card fraud   credit card processing   criminal incidents   data security   law enforcement   LAX   New Jersey operators   

 

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First Retail-Level Cadillac CT6 Rolls Out Of Factory

The 2016 Cadillac CT6 is nearly ready to launch in the United States, but the winner of the first production 2016 Cadillac CT6 has taken delivery of the first example.

Last April, Car dealer David Flynn of Columbiana, Ohio, bid the sum of $200,000 for the right to purchase the first retail production model of the 2016 Cadillac CT6 sedan.

The News Wheel article here

Related: See Cadillac CT6 cover story in the April issue of LCT Magazine

Keywords

Cadillac   Cadillac CT6   dealerships   new sedans   new vehicles   OEMs   premium luxury sedans   vehicle production   

 

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Vamoose Bus Expands NYC-DC “Gold” Motorcoach Service

NEW YORK — Vamoose Bus, the intercity bus company that moves more than 7,000 travelers a week between the Washington, D.C. area and midtown Manhattan, this week added scheduled Business-class Gold Bus service runs.

Starting soon, travelers can board a Vamoose Gold Bus in Arlington, Va., at 6 a.m. with a single pick-up stop in Bethesda, Md., and arrive at 30th Street and Seventh Avenue, one block from Penn Station in the heart of midtown before 11 a.m. No other bus company offers this service between New York City and the Washington, D.C. area.

“With the expansion of our premium Gold service, Vamoose is now able to bring more visitors into New York City,” said Florence Bluzenstein, a company co-owner, in a press release. “You will arrive early in the heart of the city and will be able to do more – business meetings, theater, shopping, dining, or enjoy a full range of tourist activities during your day.”

The early morning departure will supplement existing Gold Bus service which offers a scheduled 9 a.m. daily departure from Arlington, Va,. with a single pick-up stop in Bethesda at 9:30 a.m., and an estimated 1:30 p.m. arrival in midtown Manhattan.

The Gold Bus features wide-body, “two-and-one” leather seating with extra arm- and legroom, on-board free Internet service (Wi-Fi), and 110-volt AC electric outlets. It carries only 36 passengers, compared with 56 seats on its standard coach buses.

The Gold Bus is expected to be in high demand from corporate travelers seeking an alternative to air travel or train, and Vamoose believes that its luxury service will appeal to any traveler who values comfort and amenities over lower cost service.

In an interview with LCT, founder and owner Sam Bluzenstein said the Gold-level service has gained in demand since Vamoose started it in 2010. The company started its standard motorcoach service in 2004.

Vamoose leases motorcoaches from DC Trails, a motorcoach comopany based in Washington, D.C. that offers all types of bus transportation, including city tours of famous landmarks and destinations. The company uses five buses during the week and 12 on weekends for its standard and Gold-level service levels. DC Trails runs a fleet of about 70 motorcoaches. Bus models used by Vamoose range from 2013 to 2015 MY Van Hools.

A one-way ticket on Gold-level service costs $50 per rider on weekdays, with last minute tickets rising to $60 once a bus reached half-full reservations. On weekends, tickets start at $60 per rider. The regular Vamoose bus service costs $30 per one-way ticket and $40 for last minute. Those ticket prices compare favorably with Amtrak tickets, which can cost $200 per person between washington and New York City, and similarly priced airline tickets between Reagan National and LaGuardia airports.

The average one-way bus trip takes about four to four-and-a-half hours without stops. That timespan also compares favorably with the total ground-transportation-TSA-check-and-air-travel time when flying between the two cities.

Passengers on the Gold buses are also offered complimentary bottled water and Mon-Sat copies of The New York Times, Bluzenstein said. All passengers are allowed to bring aboard their own food and drink.

Vamoose Bus was awarded “Best Bus to NYC” by Washingtonian Magazine in 2015.

Sources: Vamoose Bus and LCT editor Martin Romjue

Keywords

charter and tour operators   commuter services   line runs   motorcoach operators   motorcoaches   New York City   New York operators   Van Hool   Washington DC operators   

 

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zTrip App Arrives To Go Up Against Uber For SXSW

Just in time for South By Southwest, a new chauffeur-backed ride-hailing company has launched in Austin to compete with the city’s taxis and transportation network companies such as Uber and Lyft.

The service is called zTrip, which is a ride-hailing software platform developed by TransDev North America, a division of Paris-based TransDev. Transportation companies such as taxicab or chauffeur services can contract with TransDev to add app-based ride-hailing to their services. TransDev has already launched zTrip in Pittsburgh, Kansas City, Baltimore, Orlando, Tampa, Denver and Phoenix.

Austin Business Journal article here

Keywords

apps   mobile technology   Texas operators   TNCs   Uber   vehicle apps   

 

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Drug Testing Made Easy For Every Driver

While transportation networking companies (TNCs) are natural rivals of the chauffeured transportation industry, one standard should never be in question: safer transportation with drug tested drivers.

The tragic Kalamazoo, Mich., Uber driver shootings and the accompanying anger and sadness have refocused attention on the need for driver background checks. Those checks, however, don’t just need to cover the criminal; drugs and alcohol are just as vital a component, as proven by incidents in which a handful of Uber drivers have been found to be drunk or stoned.

The state of California, for example, requires that all commercial drivers follow Department of Transportation standards for drug testing. But Uber, on its website, classifies itself as “…a technology company that has developed an app that connects users (riders) with driver partners who provide transportation to the user. Uber is not a transportation carrier, and does not employ any drivers.”

Therefore, TNCs do not believe it is mandatory to adhere to the same laws as chauffeured transportation companies do, which have the best maintained cars, professional chauffeurs, commercial insurance, and duty-of-care responsibility.

Independent Drivers Consortium (IDC) CEO Ben Caswell and Founder and Chief Medical Director Dr. Marshall Zablen are working together to create an affordable drug testing program possible for chauffeurs as well as professional independent drivers. The two have developed a turn-key solution that not only makes this simple, but low cost as well.

The IDC app is for independent contract drivers, although the program will work just as well for chauffeurs who are employed with professional ground transportation companies. Drivers pay for their own program, and their company can see the test results through back-office software. For a yearly fee of only $99, every driver can get tested prior to their employment, if there is reasonable suspicion/cause, randomly, when they return to duty, as a follow-up, or post-accident.

The driver simply inputs the code number for their contractor or contractors, who will then receive the test results. The app contains locations for this driver to take tests, a copy of their program certificate, the expiration date of their program, and a copy of their most recent drug test.

An employer can choose to have Norton Medical (IDC’s parent company) select the drivers for random testing. Then, the company can see all the drivers that were selected randomly and send them whenever is most convenient. Drivers will receive text and voice call alerts telling them they were selected, and they can then find whichever testing location is closest to them via zip code search. With over 7,000 collection sites, it’s impossible for a driver to complain about testing being inconvenient.

Drivers are proud to be in a drug testing program because it means they are serious professionals. US DOT drug testing programs have been proven to work as shown by the significant improvement in professional truck drivers who are required to be tested for illegal substances, Zablen said. When random testing began in 1989, 18% of truck drivers had cocaine, amphetamines, or marijuana in their systems — that’s one in five drivers. Twenty-five years later, the rate of drug usage has fallen to less than one percent. You have to drive by 99 trucks to find a driver with drugs in their system.  As a result, fatalities have fallen more than 80% for every one million miles driven.

“What really makes me angry is that [Uber drivers] continue to tell us they are professionals, yet they certainly aren’t acting as a professional driver should,” Caswell says. “Limousine drivers are professional and adhere to regulations. We are trying to make it easier and more convenient for them.”

Zablen adds, “Limousine companies that choose to use the app are provided with a logo graphic to add to their website and a decal for their vehicles to help differentiate them from competitors who don’t drug test.”

In addition, Caswell and Zablen are talking with several livery software companies to integrate the Norton back-end management solution into their systems so an owner can have fingertip access to MIS reports and the statistical analyses they need during DOT audits.

The IDC app allows chauffeurs to tout their commitment to safety to their corporate and repeat customers. Whether you absolutely loath TNCs or want to work with them, the main goal should be keeping drivers who are under the influence off the streets.

To preview the mobile interface, click here.

Keywords

apps   drug testing   drugs   federal regulations   industry regulations   internet applications   mobile applications   regulatory enforcement   TNCs   U.S. Department of Transportation   Uber   WebXclusive   

 

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TNC Travesties Of The Week

Emergency Number For Uber Customers Exists, But Is Nearly Impossible To Find: Uber has an emergency phone number for passengers and drivers to get in touch with a human employee at the ride-hail company, according to a report in Inc. Thursday. The number, which has been operational since October, is only available in 22 cities and is only intended for non-911 related emergencies. The revelation comes after Uber faced questions about a “panic button” in the wake of a deadly shooting in Kalamazoo, Michigan by an Uber driver last month. The Verge article here.

Uber Won’t Leave It’s Florida Users Alone: Residents who open the Uber app today will see a message that reads “tap to vote for Uber.” This leads to a second message: “Legislation currently blocked in the Florida Senate would allow all Floridians access to Uber.” Users are then urged to register their support (green checkmark) or opposition (red x) to that statement.

This brings up a third, more existential message. “It’s not hard to hold an up or down vote,” it reads. ” There are only three days left in the 2016 session for the State Senate to vote on allowing all Floridians access to Uber. A bill that would do just that passed the House 108-10, but Senate President Gardiner is refusing to even let the Senate take a vote.” (Emphasis theirs.) The Verge article here. 

Keywords

criminal incidents   Florida operators   passenger safety   TNC travesty   TNCs   Uber   

 

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Clear Answers Enlighten Path To Profits

COLUMN DEBUT: It is with great pride and enthusiasm that I introduce my column for LCT Magazine, appropriately called Profit Driven. I would like to show you better ways of growing revenues and making money, drawing from my long career as a business executive.

I will cover the major areas of finance, revenue, marketing and business development. Each segment involves many sub-topics that I believe can supply you with detailed information to apply to your operations and businesses.

I also welcome your input on topics that you’d like to see covered, as the primary goal here is to give you value and help in improving your business.

This column will cater to owners running fleets of all sizes. I will share different strategies and benchmarks for your business, and explain how to grow it to the next level.

Our industry faces so many obstacles. To navigate through them, we need a sound plan to execute. Obstacles vary in difficulty, but with the right knowledge, talented employees, financial capacity, ingenuity and proper leadership, we all can face and conquer any challenges that emerge.

Topical Tour
My column will deliver insights gleaned from detailed research and the experiences of businesspeople who found solutions in strengthening their businesses:

• In the articles addressing finance, I will offer information on how to analyze line-by-line income and expense categories, balance sheet considerations, direct billing versus credit card processing, leasing versus buying equipment and vehicles, mergers and acquisitions, vendor negotiation, use of barter and a host of related topics.
• On the subject of revenue, we will explore analyzing each client for profitability, cultivating an account, solving client incidents, avoiding too heavy a concentration within the overall revenue base, referrals, client surveys, affiliate relationships, customer service, commissions, discounts and overall rate structure.
• In approaching marketing and sales, I will divulge details including the various methods used to attract new business: Use of free advertising, promotional ideas, value additions, referral networks, cold calling, use of the Internet, social media, newsletters, company websites, and a list too lengthy to put here.
• Lastly, for business development, you will gain information on: how your team can play a role in business development, commissioned sales reps, concierges, reaching the decision makers, the 80/20 rule, how to listen to your client needs, reaching the clients’ goals, and required follow-up steps to maintain the business.

Applying Solutions
I know firsthand that simple solutions to ground transportation problems are rare. But I find most answers to problems involve a series of bullet point approaches that are well thought out and easy to understand.

In today’s business climate, the challenges often seem to outweigh the opportunities for success. Over the years, our industry has encountered issues with overregulation, independent operator vs. employee debates, airport and port obstacles, rising costs of almost every line item, stagnant rate increases, local and national competition, and now the growing presence of transportation network companies (TNCs), such as Uber and Lyft. Despite all of those issues facing us, we must find ways to survive.

I’ve seen many owners and operators struggle. My goal for this column, along with the services I provide through my consulting company, is to alleviate that stress and get everyone on the right track to drive profits.

In addition to sharing vital information and ideas, I will rely on you to email me questions on column topics so we can all learn from each other and grow stronger in business together. Everyone in this industry works tirelessly to succeed. I’m here to help you on that well-deserved and earned path to profits.

Ron Sorci is the founder and CEO of Miami-based Professional Consulting Resources Inc. (www.pcrforyou.com). A former senior executive at public and private companies, Sorci most recently worked as CFO of Aventura Worldwide Transportation in Miami. He also served as President of the National Limousine Association from 2009-2010. He can be reached at Ron@pcrforyou.com or (786) 229-3662.

Keywords

business growth   business management   finance   operator finance   Profit Driven   profits   revenue growth   revenues   Ron Sorci   

 

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Is Tipping a Thing of The Past?

Gratuities have always had a solid presence in the transportation industry from cabbies to chauffeurs and bus drivers.

It is rumored that to offer someone “tips” was an act To Insure Prompt Service, or TIPS, as it became known. It was intended to reward exceptional service rather than be a compulsory payment.

Today, people wonder if it is appropriate to tip everyone, from the gardener to the mattress delivery team. You would never tip your Starbucks Barista in England nor would you tip a cabbie. Yet, in the U.S. even fast food counters have obvious tip jars begging you to up the employee’s pay for the day. 

The New Concept

Danny Meyers, a popular restaurateur in New York City, decided to forbid patrons from tipping his wait staff. He instead raised the prices on his menu and began paying his employees top wages with health care benefits. Joe’s Crab Shack, a national seafood chain, followed suit, raising its employee wages to $14 per hour and requested guests to refrain from tipping.

Other companies outside of the restaurant industry forbid tipping employees, such as Albertson’s Grocery Stores, a Boise-based chain. If a clerk helps you carry groceries to your car, he is not allowed to accept a tip.

Limousine Industry

BostonCoach has long maintained a no tipping policy, even stating it on its website and in literature provided to new corporate clients. A direct statement says, “Remember our no tipping policy.” My former company, Limousine Scene in Bakersfield, Calif., eliminated mandatory gratuities six years ago in favor of a starting wage of $12 per hour when the minimum hourly wage was $6.75. 

Clients are free to tip their chauffeurs at the end of rides. Many transportation companies have implemented a “service charge fee” and pass on only a portion of the amount collected. While completely legal, it may deceive the client, who falsely believes the entire amount goes to the person providing the service. 

On the other hand, if an operator passes on a portion of this service charge and the client doesn’t understand the difference between a gratuity and a service charge, the driver may get a double dip.

Are Tips Fair?

Do tips really cause employees to work harder and deliver better service? Customers can use it as a weapon to punish a person for providing bad service. If an employee relies primarily on tips rather than wages, he can be financially penalized for a mechanical failure. An angry client can withhold a tip as a result of a service failure. 

Likewise, is it fair to force your client to pay a 20% gratuity before your chauffeur has even rolled out of bed in the morning? Suppose he is late, picks up the client in a dirty vehicle, and gets lost? Why should a client be forced to pay what was intended to be a gift? Yes, that’s right, the dictionary says, a gratuity is a gift. It’s not really a gift when it is forced upon a customer.

Fairness

The IRS ruled in June 2013 there is a distinct difference between a service charge and a gratuity charged to a customer. A service charge is a non-negotiable charge forced upon the client and collected by and for the business. A gratuity is an amount decided solely by the customer and can be any dollar amount or percentage the customer decides to pay.

If you are collecting an amount designated and presented to the customer as a gratuity, the entire amount determined by the customer must be paid to the chauffeur. The employer cannot keep any part of it. While this ruling applies to tax and tip matters, keeping any part of an employee tip violates the Federal Labor Standard Act.

At the end of the day, your policy should reflect your values and your bottom line. Each approach, tips or no tips with higher wages, has its pros and cons. Make sure you check with your employees, your clients and your spreadsheets to see what reflects best on your company.

About the Author

Smooth Operations provides a broad range of information focused on new ideas and approaches in management, human resources, customer service, marketing, networking and technology. Have something to share or would like covered? You can reach LCT contributing editor and California operator Jim Luff at Jim@LCTmag.com.

Keywords

chauffeur gratuities   chauffeur tipping   customer service   employee management   employee wages   how to   Jim Luff   New Operator   small-fleet operators   smooth operations   

 

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