NLA Ends Deem Agreement As Founder Patrick Grady Exits

Posted on April 20, 2016 by Tom Halligan - Also by this author - About the author

Deem Founder and CEO Patrick Grady, pictured here in March 2015 at the International LCT Show in Las Vegas, has left the company he founded in 2000.
Deem Founder and CEO Patrick Grady, pictured here in March 2015 at the International LCT Show in Las Vegas, has left the company he founded in 2000.
SAN FRANCISCO — Deem, a provider of cloud and mobile applications for the private ground transportation industry along with end-to-end reservations and back-office management, has announced the departure of company founder and CEO Patrick Grady.

Grady's exit coincides with Deem investors announcing $34 million in new funding to shore up its core products of travel, expense, and ground transportation technologies.

Meanwhile, the National Limousine Association (NLA) Board of Directors made public on April 20 it had unanimously voted Feb. 28 to terminate its agreement with Deem, which the two parties had signed in July 2015.

The NLA agreement, formally called the Deem Marketing Agreement, was established to form an alliance to boost the chauffeured ground transportation industry by deploying a preferred technology platform for members to counter TNC competition and improve customer pre-arranged and on-demand reservations.

This decision was not made lightly, according to the NLA in a statement released April 20. “The NLA entered the agreement with Deem with high expectations. Because the Board's primary focus was, and always will be, the best interests of the membership, the board terminated the agreement when this partnership was no longer in alignment with that goal,” the statement said. "The NLA, as always, will continue to work toward protecting the industry, providing value to members, and acting in good faith. We appreciate the constant support of the membership and your trust in the Board to do what is right in order to advance and protect the chauffeured ground transportation industry.”  

NLA President Gary Buffo added, “When the NLA Board decided last year to enter into a partnership with Deem, our intention was to protect and advance the chauffeured ground transportation industry. Unfortunately, we were let down and dissolving the agreement was the best course of action the Board could have taken to continue protecting our members.”

Deem Investment

Mike Daly, Deem vice president of travel & car services, said in a statement this week the technology provider has secured a new funding round of $34 million led by existing investors PointGuard Ventures and Hony Capital. In Silicon Valley, PointGuard Ventures has an exceptional track record of 13 IPOs and many successful M&A exits across 50 companies. Hony Capital is a $10 billion private equity and investment fund. With this round, it has sufficient capital to move well into the future.

Along with the closing of the financing, the company changed leadership, with Grady moving on to spend more time with his family and pursue new activities. Grady -- who was not immediately available for comment today, but indicated he would answer email questions -- gained visibility in the limousine industry in 2015 as a State of the Industry speaker at last year's International LCT Show, and as a technnology presenter during the annual LCT Leadership Summit.

Replacing Grady are Krish Panu, Chairman of the Board and Managing Partner at PointGuard Ventures, who will become Chairman and CEO of Deem, and John F. Rizzo, Deem President and COO, who will oversee daily operations. Most recently, Rizzo was a member of the senior leadership team at SolarWinds, an IT software company that grew from  $325 million to $505 million in two years and was taken private last month in a $4.5 billion transaction.

"As a business, our strategy is to apply this capital to more acutely focus on driving innovation more rapidly for the Deem products you are currently using and to deliver even more value over time," according to the statement.

View comments or post a comment on this story. (1 Comment)

More News

Driverless Vehicles Will Alter How We Buy, Own, Insure Cars

Automakers are not only unprepared for the change -- they’re not even trying.

Owners Of Dav El/BostonCoach Buy GroundLink

Marcou Transportation Group has also acquired the Limo Anywhere software company, which will remain independent.

iCARS, Join To Create Global B2B Network

The chauffeured car service links its on/near-demand app with an online ride booker and lead generator, resulting in new opportunities for operators.

How Uber Deploys Data To Get Its Way With Cities

Airbnb and Uber are using information to maintain control of their relationship with local governments. 

It's Time To Realize The Power Of Mobile Marketing

With the new year comes compelling evidence 2017 could be one for the history books when it comes to smartphones and tablets.

See More News

Facebook Comments ()

Comments (1)

Post a Comment



See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close