36 BLACK CAR NEWS NOVEMBER 2009

LBOA PERSPECTIVE
Recently, TLC Commissioner Matthew Daus released a letter explaining his position on the controversial Avis/WeDriveU issue, and stated that their operations "do not require licensure and are legal." After all this waiting, we (at LBOA) have to say that we were shocked by this answer, and would like to explain our perspective on why we think he should reconsider his position. We found that certain items mentioned in his letter were somewhat different from what we found when we did our own investigation of Avis/WeDriveU. And we are certainly not alone on this. The attorneys for the Black Car Assistance Corporation had previously prepared a legal opinion based on the various laws clearly showing that this falls within the jurisdiction of the TLC. Several months ago, recognizing that Avis/WeDriveU was operating in other states, LBOA joined forces with the Limousine Associations of New Jersey and the Maryland Limousine Association to find out what we could about their business model and the way they conduct business. We hired a licensed private investigator and then our President, Sergio A. Sanchez and I hired an Avis/WeDriveU car. We videotaped the entire four-plus hour trip and provided the tape to the TLC. We were picked up at La Guardia Airport and were driven to several stops in Manhattan. We purposely kept our trip completely within New York City. From our findings, we concluded that Avis/WeDriveU has a significant unfair advantage in the marketplace, and urge the TLC to change its decision. To begin with, Avis advertises its service under the name "Avis Chauffeur Drive," and states that it has partnered with WeDriveU to provide the chauffeur. While it is true that you can book a car for yourself without a chauffeur, all the links and information clearly give the impression that the two are linked together. We booked a car and asked for a chauffeur. The agent transferred us to another agent who responded saying, "Avis Chauffeur Drive." Not WeDriveU, but Avis Chauffeur Drive. There was never a mention of WeDriveU. To us, this seems to be one seamless reservation system and not "separate operations" as the TLC indicates. When it came to billing, the TLC stated that paying for such services is done separately and apart from the customers Avis rental car. This is not what was explained to us, nor was it the way we were billed. We called WeDriveU directly to see if we could book a car through them or whatever procedures they suggested. We were clearly told that in order for them to pick up the car, we had to book through Avis and provide WeDriveU with a reservation number and Preferred "Wizard" Number. We were told that they would be paid by Avis, and that it would be on the charge directly from Avis. We would be required to pay for a minimum of three hours, with a 14% service charge. As we drove around Manhattan, we asked the chauffeur if we could videotape our trip and he agreed. He also explained some shocking things to us, which were given to the TLC in the DVD.

THINGS WE DISCOVERED ABOUT AVIS/WEDRIVEU

BY GUY B. PALUMBO, SECRETARY/TREASURER, LBOA

The chauffeur explained that he is an employee of WeDriveU, but has his own corporation and does other freelance work. When asked about how we would be billed, he said that Avis pays WeDriveU and then he gets paid. After the trip, we requested a bill from WeDriveU, which was sent to us several days later and clearly shows that payment was made by our credit card to Avis. The TLC has stated that Avis does not set the contract terms or duration of WeDriveU services. But when you attempt to book a vehicle you are clearly told through Avis that there is a minimum of three hours and the rate is $32 per hour. In the industry, this is commonly called either as directed or hourly. The TLC indicated that Avis does not act as a base because it does not dispatch pre-arranged destinations and the customer provides destinations. Are we wrong in not calling this as directed or hourly? WeDriveU is in fact dispatching the drivers. We all know that the Port Authority of New York/New Jersey has found Avis in violation of its agreement, and that other jurisdictions have done the same. Why is the most controlled public agency in the country failing to recognize that this is not a level playing field? If the TLC is convinced that Avis does not fall under its jurisdiction then how about WeDriveU? Is it not operating as a dispatch facility by sending chauffeurs to do hourly work? When you consider bases that use independent operators licensed under the TLC, arent they in fact doing the same thing? So why shouldnt WeDriveU be properly licensed? Lets try a different scenario and take the TLC decision to its logical conclusion. Say we have company A that does not own any vehicles, but advertises for services and requires that all reservations be for a minimum of three hours. Another corporation, B, owns 20 vehicles without any chauffeurs, but is licensed to rent cars like Avis. What is to prevent A from using unlicensed TLC drivers and then not technically dispatch them to drive B's vehicles? Can this end up being the new business model for all of New York City? If so, it will eliminate all TLC fees and supervision of our industry. We have just found a way to do the same work but not have any TLC rules, costs or supervision. Is this the new reality? If you are interested in setting something like this up call me. I assume it would be cheaper and easier to exist in an industry without any government regulations. We suggest that the TLC does what our three Associations did: Try this service. Don't just accept what Avis says. If the TLC is still convinced that this is legal and that it does not have the authority to regulate such a program, then the industry at large should immediately work to pass the proper legislation giving them the authority. We would gladly work with anyone who feels this is necessary. All we are looking for is a level playing field. If you would like to read the TLC letter go to our web site www.lboausa.org or if you want a copy of our video, contact me, Guy B. Palumbo, Secretary/Treasurer at gpalumbo@lboausa.org