Crisis Management in the Livery Industry

During the NELA’s Quarterly Meeting on March 10, 2020, Brett Barenholtz of the NELA Board presented on managing a livery business during a period of crisis.
Brett stated that this isn’t the first time operators have had to work through challenges, citing 9/11 as well as the difficulties resulting from the financial downturn of 2008.
Here are some of Brett’s key points from Tuesday evening:
1.   React quickly. Do not wait.
2.   Reduce your costs - you need liquidity.
  • Equipment Loans – contact your lenders
    • Push back payments
    • Defer payments
    • Get extensions
    • Refinance at lower rates if possible
    • Interest-only payments
  • Insurance
    • If a big payment is due, see if it can be made in installments
    • Would it make sense to take some cars off the road?
  • Leased Space
    • Call landlord(s) to see what they can do
  • Manage work schedules
    • We tend to staff for the heaviest volume – time to revisit that
    • Can you reduce staff to a 4-day work week?
    • Can you reduce hours per day?
    • Certainly want to avoid OT
3.   Calm your clients.
  • Inform clients what you are doing to mitigate contagion
4.   Even now, there ARE sales opportunities.
  • If people were taking the train to NYC, offer a discounted rate in a private sedan
  • For people taking short flights, for example to NYC, again, there is less risk of contagion from a private sedan than from a plane