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

Just Posted

Two-vehicle collision involving motorhome on Highway 97

No injuries have been reported on the scene

Kelowna homeowners asked to trim back trees

Kelowna is reminded residents they are responsible for trees and shrubs

Cannabis company to expand in Kelowna

GTEC enters into agreement to acquire facility in Kelowna

Water quality advisory for 290 Killiney Beach properties

Regional District of Central Okanagan issued the advisory on Monday

Mix of sun and cloud for the Okanagan-Similkameen Shuswap

Chance of showers for much of the region this afternoon

Food fight: Liberals, Tories trade shots as pre-campaign battles intensify

Health Canada released an overhauled document that did away with traditional food groups and portion sizes

VIDEO: Bystander training gains traction as tool to prevent sexual harassment, violence

Julia Gartley was sexually assaulted after an event, and no one stepped in to help

Shuswap air cadet contests Department of National Defence gender policy

Haircut inspires challenge of regulation around male/female identity

North Okanagan residents warned of road closure

Cherryville bridge closures planned

Update: Coroner investigating after body recovered from Okanagan Lake

Penticton fire department assisted the RCMP with the recovery of a body Saturday

Two brands of ice cream sandwiches recalled due to presence of metal

The Canadian Food Inspection Agency issued a recall on Iceberg and Originale Augustin brands

Sexual assaults, extortion on the rise even as crime rates stay low: Stats Canada

Rates of police-reported sexual assault rose for the fourth year in a row

Donkeys await your hugs and scritches at anniversary event

Turtle Valley Donkey Refuge invites public to help celebrate 20 years of care.

Most Read