A look at Southern California airport budgets shows that the move to let ride-hailing services pick up and drop off passengers at LAX — and pay a fee to do it — was not the financial disaster some had feared.
Ann Marie Bingo chats with Uber driver Mike Miller as UberX began making passenger pickups at Los Angeles International Airport in 2016, joining competing service Lyft.
And a good thing, too. Although airports are generally self-supporting, a sharp decline in revenue would probably be resolved by increasing other fees, which could get passed along to travelers.At Los Angeles International Airport — one of the nation’s busiest airports — ride-hailing service drivers pay a $4 fee for every passenger picked up or dropped off at the airport curb. Uber, Lyft and other ride-hailing companies are charged fees of varying amounts by other local airports.
“The fact that people are taking Uber and Lyft in such volume is a good thing,” said Justin Erbacci, LAX chief innovation and technology officer. “It shows people like to use them to get to the airport.” For Ontario International Airport, the arrival of ride-hailing companies “has not affected us in a negative way,” said Atif Elkadi, the airport’s deputy executive director. Fees charged to Uber and Lyft increased about $230,000, up 85%, in the six months ended Dec. 31, 2018, over the same period in the prior year, while car rental fees bought in an extra $530,000, up 13.4%, and parking revenue was little changed.
Airport officials said ride-hailing revenue is expected to rise because the companies last year began paying a $2.25 fee for each drop-off on top of the fee charged for pickups. The fee increased to $3 on March 1.Ride-hailing companies last year began paying a $2.25 fee for each drop-off at John Wayne Airport, on top of the fee charged for pickups. The fee increased to $3 on March 1.
Over the last three years or so, ride-hailing services have become ubiquitous in big cities, especially popular among business travelers. Airports initially restricted Uber and Lyft to dropping off passengers at the terminal curbs but eventually reached deals to let them also pick up rides.
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