Drivers participating in the nation's most extensive ridesharing services are all independent contractors and, as such, are responsible for keeping their own vehicles maintained. After all, if they want to make money as a contracted driver, it seems perfectly reasonable to expect them to oversee vehicle maintenance, performance, and efficiency.

However, this includes self-monitoring for vehicle safety, and many of these contractors don’t have any immediate concern when it comes to dangerous recalls. There is no law mandating that rideshare companies or their contracted drivers safeguard against any danger their vehicles may present due to an existing recall.  And, depending on the specific type of recall, drivers could lose days, or perhaps weeks, of income waiting for parts to arrive to attend to the repair. Many drivers cannot afford to take that much time off.

According to an article by Consumer Reports, 1 in 6 Uber and Lyft vehicles have open safety recalls – and that’s only in New York City and Seattle – which accounts for 94,000 vehicle records! Can you imagine how many there are nationwide?

The problem is that these contracted drivers continue to pick up a multitude of passengers every day who could be riding in an unsafe vehicle – and the passenger has no idea. Most rideshare customers assume that these vehicles are safe and don’t fully recognize just how little concern many of the drivers have for vehicle safety. Imagine an Uber or Lyft vehicle arriving to pick you up with a sign in the window, stating, “This vehicle has five open safety recalls.” Would you get in?

Ridesharing has become a very popular mode of transportation. As a result of Uber and Lyft drivers circling cities in search of their next fare, there are now, in all probability, a more significant number of unsafe vehicles on the road traveling more miles, thus presenting an even more substantial risk to the driving public than if these services were not available. I'm not suggesting that ridesharing should be abolished. It’s clear that consumers love these models and that it may decrease congestion. My question is, shouldn’t these companies (and their drivers) ensure that all vehicles used to transport passengers are safe?

Currently, drivers are not required to provide proof of vehicle service, and completion of any safety recalls. All that is presently required is proof of registration and insurance. It is not difficult for these rideshare companies to then use this information to check for any outstanding recalls on the driver’s vehicles.

In my opinion, it would be a good idea for Uber and Lyft need to take a look at this situation and take steps to ensure the safety of their passengers through some sort of recall monitoring. They could then demand that any contracted drivers complete recall repairs before their vehicle is used to transport passengers.

Customers who utilize these ridesharing services don’t look at it as if they are hiring “John, the driver,” but, rather, perceive they are hiring Uber or Lyft. After all, access to these contracted drivers and their potentially unsafe vehicles is enabled by their ride-hailing apps. Not only that, the financial transactions themselves are between the unsuspecting consumer and these big businesses.

It is probably only a matter of time before the rideshare companies get sued, should a passenger be injured by something such as an exploding airbag – and no one wants that.

So, my hope is that these ridesharing companies rise to the challenge and institute a simple plan to monitor for any outstanding recalls and have their drivers fix them. It could even make for a great consumer campaign as a value-added benefit. Something else the consumer does not have to worry about!

In today’s society, time is a precious commodity. So much so that consumers make their buying decisions based on how long it takes to complete the transaction. If you had the choice between a $20 oil change that would take 4 hours to complete, or a $30 oil change that would take 30 minutes, which would you choose?

For the automotive industry, time is now front and center, and there is no better proof than the digital retailing movement that has been happening for some time.

At the Automotive News 2019 Automotive Forum, a panel of experts discussed the fact that “time is the enemy of car buying.” Among those sharing their opinions was Paul Walser, dealer principal of Walser Automotive Group and NADA’s current industry relations chairman. He stated that consumers want faster transactions and that it should only take about 25 minutes from the moment a consumer chooses a vehicle to when they leave with it. Currently, his dealership stands at an average of 42 minutes – a great feat in and of itself.

All of this data supports the flood of startups and disrupters that have popped up in the last few years whose sole message and goal is to make the car buying process simpler for consumers.

Does this sound familiar? It should because it’s merely history repeating itself.

So, what does this have to do with vehicle service?

Think back to the good old days when franchised dealerships were consumers’ only option for vehicle maintenance and repairs. Sure, there were always “mom and pop” and backyard mechanics, but it was only about 30 years or so ago that the Jiffy Lubes and large chain independent repair facilities started popping up with… the exact same marketing message digital retailing pushes today: “We’ll save you time.”

As service is the cash cow in most dealerships, how about taking that digital retailing message of saving customers time and also pushing it within your service department? Just as time is the enemy of car buying, it is equally, if not more so, in service. That’s why Jiffy Lubes exist.

While franchised dealers have cornered the market for warranty and recall work, there are rumblings at the legislative level about allowing independents to complete recall repairs. If that were to happen, it would be a severe blow to franchised dealers’ service bottom line.

I realize that keeping up with warranty as well as the millions of existing recalls while, at the same time, continuing to perform routine maintenance is an overwhelming job. But that is why it is so important to continually analyze and investigate ways to make your service department more efficient. This can help increase shop capacity, revenue and keep those loyal customers coming in.

The recent focus has been about making it faster for people to buy cars. But, in the end, consumers will service their vehicles much more often than they will buy them.

So, what can be done? Well, another interesting article in Automotive News covered its recent World Congress in January of this year, which reported that according to innovation experts, speed will make or break future relationships. According to the article, only 22 percent of consumers open email, for one example, but more than 98 percent open text messages. And there’s a vast influx of new data streams that can help the car industry do everything from creating more impactful advertising content to providing pinpoint services in connected cars.

Technology advances are upending every industry, says Howard A. Tullman, executive director of the Ed Kaplan Family Institute for Innovation and Tech Entrepreneurship at the Illinois Institute of Technology, and car dealers must take a broader view than 30-day sales cycles to stay relevant in the future.

“We’ve got an enormous flow of data and information, and we have to make it useful and meaningful,” Tullman said. “Businesses in the future will look at needs out there and build systems that are responsive. Make it easy for customers, or they won’t be there much longer.”

It is a good idea to ensure priorities are in alignment for both sales and service when researching ways to save your customers’ time and thereby increase CSI scores and profitability.

One of the biggest obstacles many dealership service departments encounter is contacting and communicating with their customers. This is not only a problem with recall customers, but with all service customers in general. And failure to communicate can easily cost your dealership service revenue through declined recommendations.

A recent survey by J.D. Power finds that modern service customers prefer digital communications over analog. If they do not recognize your number, today’s consumers just don’t answer their phones. However, relevant text messages are viewed and responded to quickly. Unfortunately, due to strict federal guidelines, dealerships are backing off of texts in favor of simple phone calls.  Still, if the consumer has opted in, your dealership does not have to fear communicating with consumers via text. Let me explain….

It’s illegal to send unsolicited commercial email messages to wireless devices, including cell phones and pagers, unless you get the consumer’s permission first. It’s also illegal to send unsolicited text messages from an auto-dialer — equipment that stores and dials phone numbers using a random or sequential number generator. 

However, if your dealership has legitimate business with that consumer (servicing their vehicle), you are allowed to contact the customer via text for acceptance of recommendations, or to update them on their vehicle’s status. When servicing vehicles speed is key. Customers want their vehicles back quickly, so you can’t afford to lose time playing phone tag, waiting to receive authorization to proceed with the necessary repairs. By the time you eventually connect with the customer, the opportunity may be lost. The consumer declines service because they cannot afford to wait any longer for their vehicle. And that means a loss of service revenue for your dealership.

34% of service customers – whether customer-pay, warranty or recall customers – prefer contact via text message. When asked, they’ll opt in. But, according to the study, dealerships only use this mode of communication 9% of the time!

Today, we all desire the convenience technology provides. According to the J.D. Power study, customers are slowly shifting their preferred method of scheduling service toward the internet and away from scheduling via phone. In 2015, the industry average preference for these two methods was 20% and 64%, respectively. This year, preferences are 28% and 59%, respectively.

And when it comes to the in-store experience, consumers also like personalized treatment, where they feel as if the service advisor cares about their individual safety and their vehicle’s needs. Dealerships that inform customers about the work being performed; know the vehicle’s history and keep the customer informed of their vehicle’s status at every step; build trust in their service advisors and the dealership.  It’s still astonishing to me that many dealerships service vehicles without first checking the VIN for open recalls. There is no better way to lose trust with the consumer than to expose them to danger. 

Franchise dealers would be wise to take note of the J.D. Power study’s findings that independent repair facilities are outpacing dealerships in customer satisfaction. In 2017, independent repair facilities improved by 22 points, while franchised dealers only improved by 17. Service quality has also experienced a shift towards independents; independents increased 23 points while franchise dealers increased by 17.

Franchised dealerships definitely have the edge when it comes to warranty and recall work. However, routine maintenance is a significant percentage of overall repair orders which lead to additional services --- and additional revenue. As vehicle sales revenue decreases, dealerships are relying more on service revenue that cannot be lost to independents.

My advice is to pay attention to technologies that make it easier for consumers to do business with you and also that make it easier for your dealership to effectively communicate with your customers.  Independents aren’t improving faster because they do better work, but because they adopt technologies that make for a better customer experience and facilitate easier transactions.

If you monitor and adopt the same technologies, you will see customers that prefer convenience and quality dealership service over independents. Quality will always trump quantity…

But convenience may easily trump them both.

In the world of the automotive industry, we are always being evaluated. Whether it’s through customer or manufacturer surveys, this feedback is incredibly valuable and, in some cases, affects dealership revenue.

Just like everyone, I patronize dealerships for my vehicle service. I was concerned because my new vehicle with 16000 miles on it had some noises coming from the front end and I wasn’t sure if it was the engine, tires, or something else. My friend owns a nearby dealership and told me to come in. While my vehicle was being serviced we could go to lunch. But I should not tell anyone that I knew him, just mystery shop and provide feedback. I’m a busy guy, so I scheduled a service appointment online. I was surprised as I did not receive any confirmation or acknowledgement of my appointment at all.

With my travel schedule, I was unable to make a good appointment on a Monday or Tuesday. So, at 10:45 am on a Friday I arrived at the dealership and found myself instantly disenchanted as I sat in my vehicle, unwelcomed, by service advisors staring at their computers ignoring me.

I finally approached a service advisor who accompanied me to my vehicle, where I explained my concerns and suggested that a quick tire rotation might fix the problem. The service advisor asked me whether I’d be waiting, or need a shuttle. It was 10:45 and I explained that I need to leave by 1:30pm. He said that it was not going to happen. The dealership was slammed and he could not even get a tech to look until the next morning. A loaner car was not offered and he did not even offer to at least try a quick tire rotation. Instead he said, “You should really schedule your service on Monday early in the morning.” He gave me a tutorial on how to better schedule my appointments. Rather than get me in for a quick 20 minute tire rotation -- scoop me in and service me -- he sent me away and blamed me for poor scheduling.  I told him that as I had to travel next week I guess I would just have to leave. And he let me go.

So, I left and I could not find a spot in the dealer’s parking lot, as it was so busy. Eventually, I parked and went back into my buddy’s office. I did end up getting my tire rotation which fixed the problem and I went on my merry way.

The Service Director and I walked the lot and he explained to me how the massive amounts of recalls are challenging the efficiency of their service drive process and the customer experience.  The service advisors have plenty of business with all these recalls coming in – they are buried with enough business to keep them plenty busy, have no room on the lot and are jockeying three cars deep.

This got me to thinking about how, when business is good, some dealers act as though they do not need any new customers coming in. But, that is exactly when they SHOULD care. The fact is, you do not know when another recession will hit, or when your business will suffer. If I were a normal customer, that dealership may have lost my business forever.                   

These days, there is a huge amount of fantastic service lane technology available that should be used in these busy dealerships. I see it employed more and more now with tools like lane tablet systems that allow the customer to remain with the vehicle for a smooth check in; electronic welcome monitors displaying customers’ appointments; and mobile tools that allow customers to review their RO Estimates and pay online before they pick up their vehicle, which ultimately reduces waiting time.

The technology is out there to make things so much better. For example, several of the CRMs like ELEAD1ONE, and Dealersocket have great technology to improve the service drive process. MyKaarma, who we work with at CFS, is a customer interaction software that builds convenience into the service experience of automobile consumers, while simplifying the lives of service advisors.

This type of technology is exactly what today’s customers are using themselves, and now expect to see in businesses they patronize. I look at customers in the waiting room – they all have their heads down viewing some sort of electronic device. Increasingly they prefer the speed and convenience that technology provides without the necessity of any human interaction. For example, I am an avid user of Silvercar, which allows you to rent a vehicle, unlock your silver Audi rental car, and return the car without having any human interaction; no counter visits, no signing anything, and of course no waiting!

Dealers now have the technology to better service and interact with the customer so the customer knows what is up next and what to do. I look at all this available technology and everything that is going on and it is sad that this dealership could not get my vehicle done on time. And, that they did not even have my appointment in their scheduling system, and there was no welcome for me at all.

I’ve been there and know what it’s like when you pull into the service drive and it is mayhem, with 5 or 6 customers waiting in their vehicles for attention. The only thing that will help a dealership improve and manage that situation is technology which helps get the customer in and out quickly, and which also provides a smoother overall customer experience.

Today’s automotive service customers are all NASCAR drivers stopping in for a pit stop. They demand fast and responsive service for their vehicles. Competition in the vehicle service arena is fierce, with an abundance of vehicle service options which can easily result in defection to a competitor.

Consider doing your own mystery shop. Look at your service department as a customer would. Then, look at using available technology and make the necessary adjustments to help give customers the best possible service experience at your dealership, to help attract more customers and keep loyal ones coming back.

In the world of the automotive industry, we are always being evaluated. Whether it’s through customer or manufacturer surveys, this feedback is incredibly valuable and, in some cases, affects dealership revenue.

Just like everyone, I patronize dealerships for my vehicle service. I was concerned because my new vehicle with 16000 miles on it had some noises coming from the front end and I wasn’t sure if it was the engine, tires, or something else. My friend owns a nearby dealership and told me to come in. While my vehicle was being serviced we could go to lunch. But I should not tell anyone that I knew him, just mystery shop and provide feedback. I’m a busy guy, so I scheduled a service appointment online. I was surprised as I did not receive any confirmation or acknowledgement of my appointment at all.

With my travel schedule, I was unable to make a good appointment on a Monday or Tuesday. So, at 10:45 am on a Friday I arrived at the dealership and found myself instantly disenchanted as I sat in my vehicle, unwelcomed, by service advisors staring at their computers ignoring me.

I finally approached a service advisor who accompanied me to my vehicle, where I explained my concerns and suggested that a quick tire rotation might fix the problem. The service advisor asked me whether I’d be waiting, or need a shuttle. It was 10:45 and I explained that I need to leave by 1:30pm. He said that it was not going to happen. The dealership was slammed and he could not even get a tech to look until the next morning. A loaner car was not offered and he did not even offer to at least try a quick tire rotation. Instead he said, “You should really schedule your service on Monday early in the morning.” He gave me a tutorial on how to better schedule my appointments. Rather than get me in for a quick 20 minute tire rotation -- scoop me in and service me -- he sent me away and blamed me for poor scheduling.  I told him that as I had to travel next week I guess I would just have to leave. And he let me go.

So, I left and I could not find a spot in the dealer’s parking lot, as it was so busy. Eventually, I parked and went back into my buddy’s office. I did end up getting my tire rotation which fixed the problem and I went on my merry way.

The Service Director and I walked the lot and he explained to me how the massive amounts of recalls are challenging the efficiency of their service drive process and the customer experience.  The service advisors have plenty of business with all these recalls coming in – they are buried with enough business to keep them plenty busy, have no room on the lot and are jockeying three cars deep.

This got me to thinking about how, when business is good, some dealers act as though they do not need any new customers coming in. But, that is exactly when they SHOULD care. The fact is, you do not know when another recession will hit, or when your business will suffer. If I were a normal customer, that dealership may have lost my business forever.                   

These days, there is a huge amount of fantastic service lane technology available that should be used in these busy dealerships. I see it employed more and more now with tools like lane tablet systems that allow the customer to remain with the vehicle for a smooth check in; electronic welcome monitors displaying customers’ appointments; and mobile tools that allow customers to review their RO Estimates and pay online before they pick up their vehicle, which ultimately reduces waiting time.

The technology is out there to make things so much better. For example, several of the CRMs like ELEAD1ONE, and Dealersocket have great technology to improve the service drive process. MyKaarma, who we work with at CFS, is a customer interaction software that builds convenience into the service experience of automobile consumers, while simplifying the lives of service advisors.

This type of technology is exactly what today’s customers are using themselves, and now expect to see in businesses they patronize. I look at customers in the waiting room – they all have their heads down viewing some sort of electronic device. Increasingly they prefer the speed and convenience that technology provides without the necessity of any human interaction. For example, I am an avid user of Silvercar, which allows you to rent a vehicle, unlock your silver Audi rental car, and return the car without having any human interaction; no counter visits, no signing anything, and of course no waiting!

Dealers now have the technology to better service and interact with the customer so the customer knows what is up next and what to do. I look at all this available technology and everything that is going on and it is sad that this dealership could not get my vehicle done on time. And, that they did not even have my appointment in their scheduling system, and there was no welcome for me at all.

I’ve been there and know what it’s like when you pull into the service drive and it is mayhem, with 5 or 6 customers waiting in their vehicles for attention. The only thing that will help a dealership improve and manage that situation is technology which helps get the customer in and out quickly, and which also provides a smoother overall customer experience.

Today’s automotive service customers are all NASCAR drivers stopping in for a pit stop. They demand fast and responsive service for their vehicles. Competition in the vehicle service arena is fierce, with an abundance of vehicle service options which can easily result in defection to a competitor.

Consider doing your own mystery shop. Look at your service department as a customer would. Then, look at using available technology and make the necessary adjustments to help give customers the best possible service experience at your dealership, to help attract more customers and keep loyal ones coming back.