Illegal ground transportation operators are becoming more sophisticated, creating potential duty-of-care and liability risks for business travelers, meeting attendees and event organizers.
A new study from the National Limousine Association and the University Transportation Research Center at The City College of New York found that unlicensed transportation providers increasingly use professional websites, social media channels and private messaging groups to appear legitimate. As a result, travelers might unknowingly book rides with operators who lack proper licensing, insurance or oversight.
Airports, hotels and events are key targets
The study, presented Aug. 4 at the Global Business Travel Association Convention in Chicago, examined 17 major U.S. air-travel markets, including Atlanta, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York and San Francisco. Researchers found that illegal for-hire transportation activity has evolved beyond traditional street solicitation into organized, technology-enabled networks, with airports, hotels, convention centers and major events serving as common pickup locations. For meeting planners, that means unauthorized operators could target attendees arriving at host hotels, convention centers and off-site venues.
Insurance and duty-of-care concerns
For corporate travel programs and meetings, the risks extend beyond compliance concerns. Unlicensed operators can create gaps in commercial insurance coverage, traveler tracking, driver screening and emergency response protocols, while potentially exposing organizations to reputational and liability risks if attendees are involved in safety incidents.
The findings underscore the importance of vetting transportation partners as part of both managed travel programs and event risk-management plans.
"Duty-of-care does not end when an employee leaves the airport terminal," said Brett Barenholtz, president of the NLA. "Companies need confidence that the provider, vehicle and driver transporting their people are safe, properly licensed and fully insured."
Steps planners can take
To reduce risk, the NLA and UTRC recommend that travel managers, meeting planners and corporate travel buyers steer travelers toward approved booking channels and vetted transportation providers. They also advise including ground transportation suppliers in sourcing and risk-management reviews, verifying licensing, insurance coverage and airport-operating authority, and independently confirming the company, driver, vehicle and trip details when exceptions occur.
For meetings, planners should communicate approved transportation options to attendees and staff, particularly for airport transfers and off-site functions, and discourage the use of unvetted providers. Further, organizations should educate travelers about the risks of using unauthorized operators and maintain traveler-tracking, emergency-communication and incident-reporting protocols to support duty-of-care efforts.
