Fliers using the relatively cheap ride-hailing services could mean that fewer would pay for airport parking and rental car services —two significant sources of airport revenue. (File photo)

Airports feared losing revenue to Uber and Lyft. Here’s what happened.

Ride-hailing could mean few would pay for parking and rental cars

Airport officials were understandably nervous when Uber and Lyft drivers began pulling up at terminals across the country a few years ago.

After all, more fliers using the relatively cheap ride-hailing services could mean that fewer would pay for airport parking and rental car services —two significant sources of airport revenue.

READ MORE: E-scooters, bikes and alcohol delivery part of Uber Canada’s plans for 2019

“At the time, all we knew was there was some uncertainty around it,” said Ryan Yakubik, deputy executive director and chief financial officer at Los Angeles International Airport.

But a look at Southern California airport budgets shows that the move to let ride-hailing services pick up and drop off passengers —and pay a fee to do it —was not the financial disaster some had feared.

Technology-amped, gig-economy start-ups have disrupted many industries in the last decade but most of the airports in the region appear to be either unfazed or bolstered by the changes.

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. Such fees typically are passed along to passengers as a surcharge.

Ride-hailing fees at LAX generated $44.3 million in fiscal 2018 and $33.7 million in fiscal 2017, up sharply from the $8.9 million in fiscal 2016, when ride-hailing services were prohibited from dropping off and picking up passengers in the same trip.

The hike in ride-hailing money more than made up for the decline in revenue from rental car companies, which dropped to $84.1 million in fiscal 2018 from $87.4 million in fiscal 2017, according to LAX budget records.

LAX parking revenue totaled $96.7 million in fiscal 2018, unchanged from 2017, which LAX officials attribute in part to closure of sections of a parking lot for a $4.9-billion construction project connecting the central terminal with a car rental facility, a ground transportation hub and a station on the Metro Crenshaw Line.

“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.”

Most of Southern California’s smaller airports have thrived since the introduction of ride-hailing services.

Hugo Martin, Los Angeles Times through the Associated Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

LETTER: Verbal attack on foreign workers disturbing

Racist and derogatory comments on social media disheartening and disappointing to Maple Ridge native

LETTER: How about a fashion contest for COVID face gear

Not trying to make light of the pandemic, but how about a community competition, no age limit

ON THE PAGE: FVRL Express launches Monday

It’s as easy as click, pick, and go at Maple Ridge and Pitt Meadows libraries starting next week

LETTER: Doctor calls foul on plea for hazard pay

Dr. Walton doesn’t believe he deserve any thing more for working during COVID

Virtual gala brings dinner to the door and money to locals in need

Maple Ridge Community Foundation is holding a ‘Night In Gala’ fundraiser on June 13

11 new COVID-19 cases in B.C. as top doc urges caution amid ‘encouraging’ low rates

Dr. Bonnie Henry also announced that two care home outbreaks would be declared over

Facing changes together: Your community, your journalists

Thanks for helping The News to continue its mission to provide trusted local news

Police watchdog investigating death of man in Delta

Independent Investigations Office asking for witnesses to May 29 incident at Tsawwassen ferry terminal

Surrey mayor’s party under fire for ‘sickening’ tweet accusing northern B.C. RCMP of murder

Mayor Doug McCallum says tweet, Facebook post ‘sent out by unauthorized person’

Father’s Day Walk Run for prostate cancer will be virtual event this year throughout B.C.

The annual fundraiser for Prostate Cancer Foundation BC has brought in $2.5 million since 1999

Dr. Bonnie Henry announces official ban on overnight kids’ camps this summer

New ban comes after talking with other provincial health officials across the country, Henry says

Senior man in hospital after unprovoked wolf attack near Prince Rupert

Conservation officers are on site looking for the wolf

VIDEO: NASA astronauts blast off into space on SpaceX rocket

Marks NASA’s first human spaceflight launched from U.S. soil in nearly a decade

‘I knew what he wanted’: Kootenay man spends hours in tree as black bear patrols below

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

Most Read