Technology

Deem, NLA Pursue Strategic Alliance For Limo Industry App

Posted on July 29, 2015 by LCT Staff - Also by this author - About the author

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Deem CEO Patrick Grady (center) and Deem product and marketing executive Adam Kupper (L) and senior architect Anson Mah (R) preview Deem's mobile platform during the LCT Leadership Summit in Miami Beach, Fla., on Monday, May 18, 2015. (Photo by LCT)
Deem CEO Patrick Grady (center) and Deem product and marketing executive Adam Kupper (L) and senior architect Anson Mah (R) preview Deem's mobile platform during the LCT Leadership Summit in Miami Beach, Fla., on Monday, May 18, 2015. (Photo by LCT)

ORLANDO, Fla. — The National Limousine Association (NLA) and Deem, Inc. formalized on July 28 a strategic technology and marketing alliance to develop and deploy a cloud network and mobile application that will provide advanced reservations and real-time ride-hailing capabilities for the chauffeured ground transportation industry. The partnership was announced during the Global Business Travel Association's Annual Convention in Orlando by NLA president Gary Buffo and Deem founder and CEO Patrick Grady.

The specific terms and conditions of the strategic alliance were not disclosed. Phase one of the new Deem Car Service will be available in the fourth quarter. On-Demand or “real-time” capabilities will be rolled out during 2016.

Full PRNewswire press release here

Opportunities
Deem is a Commerce-as-a-Service (CaaS) that connects a more than 34,000 customers, 100,000 merchants, 11 million unique products and services and 40 channel partners across a business commerce network, enabling them to lower costs, increase revenue and keep loyal customers.

According to a media information explainer distributed by the NLA:

Deem Car Service will not be serving the low-end of the ground transportation market and instead cater to the typical clients of limousine companies, suich as business travelers, premium consumers, and their families. Each operator will be able to control their own prices. Companies and users will be able to incorporate their preferred vendors and negotiated rates at the point of purchase.

Deem is partnering with operators in the $3 billion U.S. chauffeured transportation market who are already regulated and supported by local, state and federal authorities. The operations use well-vetted and insured chauffeurs and drivers along with high quality fleets and complete customer service. As a result, Deem Car Service overcomes the liabilities and weaknesses of the transportation network company (TNC) model so it doesn’t face any legal, lobbying or public relations battles and costs.

Industry estimates indicate the U.S. market opportunity for on-demand capabilities in the $7 billion range. This places the total U.S. market opportunity for Deem Car Service at $10 billion, and Deem’s net revenue opportunity at more than $1 billion annually.

“The alliance with Deem is a win-win for the NLA because only NLA member operators will be able to participate in the app, and that should help more operators to join the association,” Buffo told LCT at the GBTA Convention. He added that all present and future NLA members will have to sign-on to the NLA’s “pledge to Ride Responsibly that ensures safety and duty of care to  corporations and the public."

In a brief interview at GBTA, Grady told LCT the industry should have had an app like this years ago. “But now with our relationship with the NLA, we will launch Deem Car Service beginning with “Phase 1” in October, and then continue to add a timeline of milestones that will build more and more functionality into the ride-hailing app.”

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