How co-opetition can drive corporate car service “rivals” to mutual wins

In Chauffeured transportation by Mike Daly15 Comments

It’s a scenario that pops up over and over in business: Two traditional rivals are confronted with a shared competitor or market challenge.

These rivals face a difficult decision—take on the threat alone, or work together with an “enemy”.

For companies that recognize the benefit of co-opetition – cooperating with a competitor on a business objective – what looks like a win-lose scenario can have win-win potential.

Just a few examples of co-opetition that have created mutual wins for “rivals”:

  • Apple and Microsoft are perceived to be mortal enemies, but that hasn’t kept them from co-operating. In 2012, the companies teamed up to buy Kodak’s imaging patents to keep them out of the hands of Google.
  • In the face of strict Environmental Protection Agency (EPA) fuel economy requirements, Ford and Toyota teamed up to develop a hybrid drive system for pickup trucks and SUVs that neither had the technology to develop alone. EPA penalties averted!
  • Vendors who sell their goods online often find that the web is saturated with competition, making it impossible to stand out and drive traffic to their unique sites. To gain more visibility for their brands, many sellers have joined their direct competitors via online marketplaces like Amazon, eBay, and Etsy. This allows them to successfully market their products to the massive number of customers these networks provide. Let’s hear it for competitors cooperating for mutual wins!

Corporate black car services providers face market threats of their own in today’s sharing economy. The rise of ride-hailing apps has produced new contenders in the ground transportation game, creating greater competition for business that once went to traditional taxi and chauffeured car service businesses.

With their professional, vetted drivers and upscale vehicles, corporate black car service operators provide a unique service in the marketplace. They have, however, struggled without a network to match more casual ride-sharing services.

Co-opetition has the potential to change all that for black car providers. It would allow them to regain rides previously lost to the TNCs, who are perceived to be more convenient. Instead of competing independently for less-and-less business on the fringes, executive car companies have the opportunity to join rivals of the past to form equally convenient ground transportation networks that can thrive in this digital age.

By joining a network of chauffeured transportation providers, corporate black car services can benefit from a system that allows reservations to be booked online or through a GDS or TMC, reservations that automatically sync with back office car reservation software.

What does that mean? Convenience-minded, tech-savvy customers can use mobile apps to book travel through corporate black car service providers, foregoing more casual ride-sharing for the upscale experiences executive car services specialize in.

The power of networks is even greater: Connected ground transportation merchants have the opportunity to benefit from a reservation exchange network in which they can farm-in reservations from other providers, allowing companies to expand their business among passengers they otherwise wouldn’t be unable to connect with.

Co-opetition with corporate black car service partners is the future of executive car services. Connect with one of our experts to find out how the Deem platform can help you turn rivals into partners without losing your brand’s identity.

About the Author
Mike Daly

Mike Daly


As Vice President, Car Service & Travel at Deem, he is responsible for driving revenue both through the Travel and Car Service channels, via strategic partnerships with Travel Management Companies, Suppliers, Corporations, and Car Service Operators.

A 20-year travel industry & interactive commerce veteran, Michael Daly has long been considered one of travel’s leading experts, based upon his extensive strategic and tactical experience.