Black Car Reboot

As the demand for luxury ground transportation rallies, the limo industry is reinventing itself
There’s no denying that ground transportation businesses, along with the rest of the travel industry, was hit hard by the COVID-19 pandemic as business trips essentially stopped for a year and people were shuttered in their homes for the most part, with no need to travel. During the shutdown, the black car sector came to a screeching halt in Q2 and Q3 of 2020, and many hard-working independent companies were forced to downsize, with some companies shutting down completely, and others forced to reduce their fleet by as much as 90 percent.

But in Q4 2020, the industry began to show little signs of life and in Q1 of 2021, a surge in travel demand returned. The industry is slowly recovering and independent car companies that survived are returning cars to the road. In fact, a 360-degree view of the industry in 2021 is very different than it was at the start of 2020, with a lot of black car companies no longer around, and consolidation happening everywhere you look.

Heading into the summer, things are starting to look up for limousine companies who are being proactive and redefining their offerings, whether by adding a luxury ride-share component to the equation, or just adding new on-demand solutions that highlight luxury, cleanliness and convenience.

According to a survey conducted by the National Limousine Association at the end of April 2021, the demand for chauffeured car services is very much on the rise. The poll found approximately 72 percent of respondents reported future bookings are either slightly or significantly higher compared to March 2021, and 45 percent noted that Q1 2021 revenue was up compared to Q1 2020, with 17 percent seeing revenue rise by as much as 50 percent or more.

Categories: Special ReportGround Transportation

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