Los Angeles International Airport is raising the fees rideshare companies must pay to pick up and drop off passengers, marking the first increase in more than a decade and potentially leading to higher costs for travelers using services like Uber and Lyft.
The Los Angeles Board of Airport Commissioners approved the fee adjustments today, saying the change brings LAX in line with other major U.S. airports such as Boston Logan International Airport, San Francisco International Airport and Nashville International Airport.
Airport officials say the increase is overdue.
“Despite rideshare companies profiting heavily from LAX, the fees they pay to access our airport have remained unchanged for more than a decade, even as airports nationwide have increased both pickup and drop off charges,” said David Reich, Deputy Executive Director for Mobility Strategy at Los Angeles World Airports. “These fee increases are a small, overdue expense for rideshare companies, and will support substantial reinvestment in critical projects across the airport designed to enhance the airport experience for employees, guests and all Angelenos.”
Airports across the country rely on rideshare access fees as a source of revenue to support airport operations and improvements. With millions of passengers moving through LAX each year, the airport has become one of the most lucrative markets in the country for rideshare companies.
Currently, rideshare companies are charged $4 for both drop-offs and pickups at the airport. Under the newly approved structure, passengers who want to be dropped off or picked up directly at the terminal curb will trigger a $12 charge for rideshare companies.
Passengers who instead use the airport’s new Ground Transport Center will see a smaller increase. Pickups and drop-offs there will cost rideshare companies $6 per trip, a $2 increase from the current fee.
The new structure also closes a loophole that allowed premium rideshare vehicles to drop passengers off curbside without paying additional fees.
Airport officials say the changes are also intended to help reduce congestion in the busy central terminal area and prepare for the opening of SkyLink, LAX’s long-awaited automated people mover train. The system will connect terminals with Metro rail service, the LAX FlyAway bus network, the consolidated rental car facility and the updated ITF-West transit station, where rideshare vehicles will have expanded access.
The airport says the new rideshare fee structure will go into effect once the SkyLink system becomes operational.
But the proposal drew pushback from rideshare companies and some travelers who worry it could drive up transportation costs to and from the airport.
According to the Los Angeles Times: Uber began reaching out to its customer base to rally them in opposition but it was to no avail. The email said “LAX is pushing through a proposal that would more than double the fees you pay to get picked up or dropped off by rideshare … if approved, LAX rideshare fees would be the most expensive in the world.”
The L.A. Times quoted me in the same article and I said the proposal isn’t great timing as gas prices are going up. I also said I didn’t know if Uber or Lyft deciding to pass on the fee increase to their customers will change travelers’ plans. But the overall price increases for gas and other necessities are adding up for consumers, so much so that he said his neighbor recently asked for a ride to LAX to avoid paying for a ride on an app.
I do believe this will make more travelers take advantage of this travel hack. I think hotel/car rental shuttles from the airport will start to cracking down on shuttle riders who are not staying at their properties or renting from their dealers by double-checking to see if they have a hotel or car reservation.
No need to take a shuttle to a hotel or rental car office. Depending on the time of the day, you can walk to the nearest hotel from LAX and get some exercise in the bargain.
Agreed