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

Man accused of Brentwood Bay murder appears in court

Alan Chapman tells judge he wants next court appearance to be “as far away as possible”

Victoria couple seeks community’s help after e-bike stolen for second time

Voltbike stolen from parking garage on Quadra Street

American boat strikes reef, sinks near Oak Bay

Two people rescued from boat headed for Orca Island

Final bell could sound for project that allows Victoria grads to dress in style

Magic Wand must find space to store its prom attire for Greater Victoria students by end of June

Staff recommend major boost to Langford council pay

After 13 years without an increase, mayor’s pay would double over next five years

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Greater Victoria wanted list for the week of June 18

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: Do you support the government’s decision to approve the Trans Mountain pipeline expansion?

The federal government announced Tuesday its approval for the Trans Mountain pipeline… Continue reading

Sooke council urged to move faster on off-leash dog park plan

Resident questions why five of seven restricted parks are in Sooke

Driver of stolen vehicle caught after fleeing accident scene in Island community

Section of Chemainus Road closed until suspect located and eventually taken into custody

Home care for B.C.’s elderly is too expensive and falls short: watchdog

Report says seniors must pay $8,800 a year for daily visits under provincial home support program

B.C. ‘struggling’ to meet needs of vulnerable youth in contracted care: auditor

Auditor general says youth in contracted residential services may not be getting support they need

Pair of B.C. cities crack Ashley Madison’s ‘Infidelity Hotlist’

Data from the website reveals Abbotsford and Kelowna hottest spots for cheaters

Life’s work of talented B.C. sculptor leads to leukemia

Former Salmon Arm resident warns of dangers of chemical contact

Most Read