You asked for it and we listened. In this column, we ask operators of all sizes and from all walks of the industry a question about their business and report their answers so you can assess how your own company compares to your peers. If you would like to participate, please email Rob Smentek at
TOPIC: What are the benefits or drawbacks to using independent operators (IOs)?
IOs come with a sense of ownership. Since they run their own businesses, they tend to be more aware of liability, customer experience, and brand protection. That mindset often translates into a higher level of professionalism.
IOs can help you scale up during peak periods without the long-term cost of hiring full-time staff. Many also invest in high-quality vehicles and keep them in excellent condition, which can elevate your brand when used properly.
On top of that, experienced independents often bring valuable local knowledge and soft skills, they’ve been around the block and understand what’s expected..
The biggest risk is inconsistency. If an independent isn’t trained to your company’s standards, they might show up looking sharp but deliver a ride that’s completely off-brand. In our industry, details matter, and one bad interaction can cost a client.
There’s also less control. They aren’t your employees, so you can’t always dictate grooming, tone, or procedure unless you’ve built a strong relationship or clear agreement. Reliability can be a concern too; some prioritize their own jobs over affiliate runs, especially during busy periods.
Lastly, compliance isn’t guaranteed. You need to be sure they carry proper insurance, permits, and understand the legal side of what they’re doing. If not, their mistake could become your liability.
Bottom line: IOs can be a major asset or a liability depending on how carefully you select and integrate them into your system.
Oz Oguzhan Akgun, CEO
Limo Miami in Miami, Fla.
We don’t use IOs because there are none in my market, but it’s the same as using affiliates that you aren’t familiar with. The pros are they allow you to facilitate service for your clients, but the cons are you ultimately aren’t in full control of the situation.
Nick Boccio, General Manager
Buffalo Limousine in Buffalo, N.Y.
Advantages of IOs include reduced operating costs, staffing flexibility, and broader coverage across geographic areas. Also, IOs tend to have an entrepreneurial approach, which makes them driven to deliver high-quality service as their income is contingent upon performance, client satisfaction, and repeat business.
However, several challenges include limited control over service standards, variable availability since they establish their own schedule, brand representation concerns, legal and compliance challenges, and insurance obligations. Furthermore, there are also concerns about limited loyalty as IOs engage with multiple services and prioritize whichever offers the most competitive pay or flexibility, potentially leading to conflicts of interest.
Moe Bouayad, President
Crown Worldwide Transportation Group in Englewood, Colo.
The largest benefit of using IOs is avoiding expenses like payroll taxes and workers’ comp insurance as well as the vehicle they bring to the table. You can easily scale your fleet up or down as needed. The biggest drawback is the inability to ensure the work meets our standards. An IO can easily damage your reputation by not following the instructions or protocols of the client.
Harry Dhillon, President
Ecko Worldwide in Santa Clara, Calif.
We require our operators to be corporations or LLCs, fully insured with both auto and workers’ comp coverage, and owners of their own vehicles. We treat each IO as an affiliate.
For those who work closely with us, we refer to them as chauffeur partners. They are an integral part of our service model for our daily operations. Each partner completes a full week of training, passes a road test, and maintains the professional appearance expected of a Golden chauffeur.
We do not accept the common trade-offs often associated with IOs, such as inconsistent service or lack of brand alignment. Our onboarding process sets expectations from the outset, and our culture emphasizes continuous education and training. We have found success with this model by ensuring our chauffeur partners are held to the same high standards as our employees and are integrated intentionally into our operations.
Sean Duval, President & CEO
Golden Limousine International in Ann Arbor, Mich.
New York City is an amazing market to be part of, but without IOs, it would have been very hard to grow. We only have 20 cars in our fleet, but we run events for 200 and 300 cars. Without IOs, it would have been impossible, even after booking all the other companies we work with.
Gaston Eguigorry, CEO
Relier Worldwide Chauffeured Services in Brooklyn, N.Y.
We do not engage the services of IOs. Our industry is governed by strict standards and policies related to quality, customer service, luxury, and personalized 24/7 attention. We’ve found that IOs typically do not operate within these frameworks, which is why we believe they are not positioned to deliver the level of service our clients expect and consistently receive from us.
Ylse Escamilla, International Market & Roadshow Manager
Alquimavi in Mexico City, Mexico
Utilizing IOs offers several key advantages. Direct communication between the company and the operator streamlines coordination and eliminates the need for a dispatch intermediary like when dealing with affiliate companies. Since IOs typically cover their own vehicle-related expenses, they reduce overhead costs. The cost to work with IOs is also lower than farming out to an affiliate that has more overhead expenses. With proper onboarding and training, they can become effective brand ambassadors, applying consistent service standards across all clients and affiliates. When treated as true partners rather than just contractors, IOs often build stronger, long-term relationships that go beyond transactional work.
However, there are also notable challenges. IO availability can be inconsistent due to their first-come, first-served approach, making scheduling less predictable. Some may resist changes or structured processes, as they are not employees. Without clear expectations set early on, service standards can vary, leading to inconsistency in client experience. Additionally, overreliance on IOs can create risk—particularly if they feel underutilized or undervalued, which could lead to unprofessional behavior such as attempting to poach clients.
Ron Gil, Founder
Sedanz in Scarsdale, N.Y.
When I’m sold out or don’t have availability, usually my local affiliates are too. So, having an IO on your list gives you flexibility. During the high season it’s like having cars you don’t actually own, and in the low season you don’t have cars draining you of cash for insurance and maintenance. It also gives me an opportunity to build a relationship with someone who may be new in the industry or just likes the freedom of being a single-car operator. A drawback is that they are not always available, and as they grow their customer base, they become less so.
Tom Halsnik, CEO & Owner
Walsh Chauffeured Transportation in Tampa, Fla.
IOs can offer short-term relief during busy periods, but they’re no substitute for a well-trained, accountable team. We’ve found that relying on independents often leads to inconsistent service, communication breakdowns, and brand dilution. Your clients remember the driver, not the logistics behind the scenes. That’s why we prioritize in-house staff who are trained to our standards, represent our values, and deliver the consistency our clients expect. In this business, control is everything, and you give that up when you hand the keys to someone outside your organization.
Paul Hartnett, President
Axis Coach in Londonderry, N.H.
Use of an IO starts with complete and consistent vetting of the company in question. If you have the opportunity to meet the IO in person and see vehicles, do so. The time and energy spent will prove to be invaluable. Ask for references from other operators they work with, how long they’ve worked together, and the number of jobs they’ve done in that time period, making sure all boxes are completely checked. From proper insurance requirements to IO agreements, leave no stone unturned. Your reputation is on the line.
Len Joseph, President
On The Town Limousines in Frederick, Md.
We’re very cautious regarding any farmout work: You have the normal hazards to be concerned with but when you use an IO, these red flags are multiplied. Unless you have personal knowledge of the operator, their equipment, and most importantly, integrity, I would advise against trusting an independent with your clientele. While you’ll save a few bucks, is it worth jeopardizing your reputation and your clientele?
Bill Kerr, President
Camryn Executive Transportation in Barboursville, Va.
Using an IO offers flexibility and cost savings, especially during peak times or last-minute needs. We regularly used trusted independents pre-COVID to handle overflow work; however, post-COVID driver shortages and equipment constraints made reliability harder to guarantee. To maintain service quality, we now limit independent use to breakdowns, scheduling conflicts, or driver call-offs—ensuring every trip upholds our commitment to safety, consistency, and excellence.
Stefan Kisiov, Managing Partner
K&G Coach Line in Park Ridge, Ill.
The benefit of using IOs is usually better margins and greater flexibility. And if you’re working with a solid IO, you often get a higher level of service and a stronger sense of ownership.
At the end of the day, we use IOs because they don’t carry the same overhead we do—which allows us to make a little more than we would by farming out to another company. Of course, there are risks. A common concern is client poaching. Personally, I don’t worry too much about that, because it usually becomes obvious pretty quickly if someone’s not playing fair.
The bigger issue is that IOs are a one-way street. Unlike affiliate partners, they don’t send you any work back. And sometimes they push for reciprocal pricing, which doesn’t really make sense—because again, they don’t have the overhead we do. I remember a top local affiliate telling me that when I was a smaller operator, and it really stuck with me. It made sense then, and it still does now.
Modaser Nazir, Founder/CEO
Stay Classy Black Car Service in San Diego, Calif.
We always say, “You can’t build a church for Easter Sunday.” You have to utilize IOs if you want to grow your business. The key is monitoring and staying on top of owner-operators to make sure they are providing the same level of service as your employee drivers. You have to hold them accountable, and if they are not performing, you have to stop using them right away.
Jeff Nyikos, President
Leros Transportation Group in Valhalla, N.Y.
First and foremost, make sure you fully understand all the labor laws in your respective jurisdiction related to IOs. You do not want to find yourself in a legal quandary where IOs are declared employees, subjecting you to back tax withholding, payroll taxes, and workers’ comp fees.
Some of the key benefits of using IOs are the lower cost of overhead since you do not have to purchase, insure, and maintain the vehicles. IOs also enable you to scale up quickly for a new contract or additional volume without purchasing fleet assets. In addition, you have a reduced level of liability since legal and insurance responsibilities may be shifted to the IO depending on the regulations in your jurisdiction. You should fully understand all these regulations prior to going down this road.
Some of the major drawbacks are the lack of service quality or varying levels of service quality. Since these folks are not your employees, you are limited with your ability to train, control, or direct them since they are working for themselves. In addition, to the obvious scheduling challenges that come with using IOs, there are also branding concerns with the types of vehicles, chauffeur uniforms, and basic service delivery.
Mike Rose, President
My Limousine Service in Mt. Olive, N.J.
The discussion about IOs has definitely increased over the last few years. Even though it has not yet been relevant in my market, I’ve learned enough from my peers to see the benefits for sure. If you can find an IO you can trust to deliver the same experience as your own team, it’s a win-win: the IO gets steady work from a reputable source, and the companies can extend their fleet size and range.
Quentin Shackelford, Owner
AllClassLimo.com in Wichita, Kan.
IOs fill critical gaps for us—peak-hour demand, last-minute rides, and large-scale moves. Every IO is vetted for proper licensing, insurance, vehicle condition, and professionalism. We invite them to the same chauffeur-training sessions and local limousine association meetings our employees attend, then onboard them into our Limo Anywhere platform as “Ace Chauffeurs.” They run trips through the app (not via farm-out emails), so we—and the client—can track the ride in real time. When IOs are screened and trained to the same standards, they become an extension of our brand and a flexible asset for everyone involved.
Ryan Shaer, Vice President
Ace Limousine & Airport Service in Chester, Pa.
IOs can be great or a headache: they are either fantastic operators or pretty low quality—and sadly not too much in between. In large markets like mine, there are WhatsApp groups filled with hundreds of IOs, some operating legally but some illegally. It is critical to know who you are using because the quality of service, their appearance, and type of vehicle you are putting your clients in can cost you in more ways than one. We’ve found that some IOs have their vehicles stocked with business cards and actively try and recruit clients with a lower price. I have also seen IOs tell you they are sending an SUV and show up in a completely different vehicle, even a sedan. These scenarios aren’t always the case, but it is critical to properly vet the IOs and their vehicles if you are putting your clients in their hands.
Matt Shafik, President
Axis Executive Transportation in Houston, Texas
There’s a significant difference between occasionally working with IOs and building your business entirely around them. As a broker model, I’m not a fan. It’s challenging to maintain consistent quality and brand uniformity, especially when the operator has no capital invested and limited risk. That often results in less engagement and commitment.
That said, using independents during peak times, like major events, can be a smart way to stay agile and scale up without overcommitting. When used selectively, they add flexibility without undermining your core standards.
Ralph Van Delden, CEO
Van Delden Limousine & Travel Services in Amsterdam, The Netherlands
The value of telling a repeat-customer “yes,” instead of the alternative, is priceless—and you can’t do that as much without reliable, vetted IOs.
There is nothing like a chauffeur with skin in the game, but you must make sure they take care of the car, even when their kid needs braces.
I have been surprised at the dearth of good partnership agreements and service-level agreements available. I asked a lot of major players for theirs and got 1- or 2-page documents that spelled out service quality but none of them talked about agreeing to be the primary contractor responsible in the case of injury and loss (to hold our company unaccountable).
Far more importantly, few know how to access and send their full insurance policy, to see if they have a for-hire exclusion. Far too many are excluded from coverage when the car is used for-hire.
Charles Wisniewski, President & CEO
Teddy’s Transportation System in Norwalk. Conn.
We recognize that IOs offer key advantages, including strong self-motivation and a sense of ownership, which leads to a high level of service commitment. Their cost-effective operations enable them to provide competitive pricing without sacrificing quality. At the same time, their flexibility allows for quick adaptation to last-minute requests for assistance, which is a crucial benefit in premium chauffeur-driven markets.
However, challenges exist. IOs may be less tech-savvy, relying on manual processes that can slow efficiency. There’s also a risk of non-compliance with local regulations, such as licensing or labor laws, and some may lack adequate commercial insurance coverage.
Amy Yan, Co-founder & Managing Partner
AmyExpress in Kowloon, Hong Kong
We’ve loved hearing your answers to our benchmarking questions—but we always welcome suggestions for future topics, too!
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