CHICAGO — Illegal and unlicensed ground transportation operators are creating growing duty-of-care risks for business travelers by using digital platforms to appear as legitimate providers, according to preliminary findings from a national study released Aug. 4 by the National Limousine Association and the University Transportation Research Center at The City College of New York.
The findings were presented during the Global Business Travel Association Convention in Chicago.
The study examined illegal for-hire transportation activity in 17 major aviation and business travel markets: Atlanta; Boston; Charlotte; Chicago; Dallas/Fort Worth; Detroit/Fort Wayne; Denver; Houston; Las Vegas; Los Angeles; Miami; Minneapolis/St. Paul; New York; Orlando; Phoenix; San Francisco; and Seattle.
Researchers found that illegal operators are increasingly using professional websites, social media and private messaging groups to mimic licensed private transportation providers, shifting away from traditional street solicitation. Airports, hotels, convention centers and major events were identified as recurring hotspots. Off-app and unlicensed trips can leave gaps in commercial insurance coverage, traveler tracking, driver verification and emergency response.
“Duty of care does not end when an employee leaves the airport terminal,” NLA President Brett Barenholtz said in a statement. “Companies need confidence that the provider, vehicle and driver transporting their people are safe, properly licensed and fully insured. As illegal operators become more sophisticated, verification must keep pace.”
Among the study’s preliminary findings:
- Illegal for-hire transportation activity is evolving from street solicitation into organized, technology-enabled networks.
- Passengers may be transported without verified driver screening, vehicle inspections or reliable trip records.
- Illegal operators often avoid licensing, insurance, tax and airport-access costs required of legitimate providers.
- Fragmented enforcement can result in inconsistent penalties and unclear jurisdiction.
The study’s preliminary legal review identified at least seven states with laws criminalizing rideshare or transportation network company driver impersonation: California, Colorado, Connecticut, Florida, North Carolina, South Carolina and Tennessee.
“Illegal transportation is no longer only a curbside problem,” said Matthew W. Daus, UTRC transportation technology chair and the study’s lead researcher. “It is a technology, jurisdiction and public-safety issue requiring coordinated enforcement, verification tools and updated laws.”
The organizations recommend that corporate travel managers use approved transportation providers and booking channels, verify licensing, insurance and airport authorization, independently confirm driver and vehicle information for exceptions, and educate travelers while maintaining emergency communication and incident reporting procedures.
The study also calls for stronger enforcement authority at airports and major events, updated laws addressing driver impersonation and illegal digital dispatch networks, searchable licensing databases and expanded traveler education through airport and hotel signage.
The research builds on a 2025 UTRC-NLA report examining illegal transportation activity in New York and New Jersey. A final report is expected to provide recommendations for corporate travel buyers, regulators, airports, law enforcement agencies, and the professional private car service industry.
