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

Search crews rescue kids, 6 and 7, stranded overnight on Coquitlam mountain

Father and two youngsters fall down a steep, treacherous cliff while hiking Burke Mountain

Your weekly Mountain Minute

Golden’s 60-second news recap

An Everest fundraiser

Man set to climb elevation of Mt. Everest in one day to raise school lunch funds

Interior Health study offers take-home drug testing kits to spot fentanyl

Interior Health to evaluate safety of at home drug testing kits aimed at reducing fentanyl overdoses

Golden Fire Rescue training grounds get a facelift

Residents may have noticed some changes at the fire hall in the… Continue reading

Rescuers finally persuade Eiffel Tower climber to come down

The official said the man was ‘under control and out of danger’ on Monday night

Motorcycle deaths spike 50% since 2017

Riders were most likely fatally crash on the weekends compared with the rest of the week

Family of B.C. pilot killed in Honduras trying to ‘piece together’ tragedy

Patrick Forseth has a number of friends in the area and was loved by everyone

Justin Trudeau credits immigration for Canada’s growing tech sector

Trudeau stressed that Canada has become a major source of talent for tech all over the world

Feds launch tourism strategy designed to boost sector 25 per cent by 2025

The fund is supposed to back experiences that show off Canada’s strengths

Should B.C. already be implementing province-wide fire bans?

A petition is calling for B.C. Wildfire Service to issue a ban to reduce risk of human caused wildfires

Growing wildfire prompts evacuation of High Level, Alta.

Chuckegg Creek fire has been burning for several days, but grew substantially Sunday

Top women’s hockey player Natalie Spooner coming to B.C.

Natalie Spooner special guest at annual Grindstone charity weekend in Kelowna

Most Read