Operations

GBTA Asks Operators To Educate Clients On TNC Coverage Gap

Posted on October 21, 2015

Mike McCormick, GBTA Executive Director & COO
Mike McCormick, GBTA Executive Director & COO

“In our personal lives, we can all make our own judgments about whether these services are safe, have adequate insurance and do deep enough background checks and driver training,” says Mike McCormick, executive director of the Global Business Travel Association (GBTA), in a recent blog post on the GBTA website www.gbta.org. “When it comes to our businesses, we don’t have that luxury.”

According to a recent survey conducted by GBTA – 29 percent of companies have evaluated the pros and cons, and have made thoughtful decisions about whether these services are appropriate for their employees.

Five percent of companies have made TNCs their preferred ground transportation alternative, while 24 percent have policies specifically prohibiting their use. That leaves approximately 71 percent of companies where TNCs are an acceptable option. But nearly a quarter of the companies polled are unaware that TNCs have less driver training and requirements than other options. Seven-in-ten travel buyers indicated that they are “very concerned” about the safety of TNCs for their business travelers, and half of business travelers feel similarly.

Most people in the travel industry are impressed with the innovative technologies and service that TNCs provide. And many travelers find TNCs to be a convenient option. For businesses, however, convenience is not enough. Businesses have to think through impacts on a wide range of business critical activities – from safety and security, to liability concerns, to legal and financial implications.

“Ride-sharing services are no longer a novelty,” writes McCormick. “The businesses today that do not have a formal policy in place regarding TNCs should give serious thought to the pros and the cons that these services create, and put a proactive policy in place to protect their business and their employees.”

Read the full report at blog.gbta.org.

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