Los Angeles airport to become largest air hub with ride-sharing pickups

[July 17, 2015]  By Alex Dobuzinskis
 
 LOS ANGELES (Reuters) - Los Angeles International Airport is set to become the largest U.S. airport to allow popular ride-sharing services such as Uber and Lyft to pick up passengers at curbside, following a vote by a local commission on Thursday.

The Board of Airport Commissioners adopted the rule changes by a vote of 5-0, said Jeff Millman, a spokesman for Los Angeles Mayor Eric Garcetti who had pushed for allowing greater ride-sharing at the airport known as LAX.

"Ride-sharing is becoming popular in Los Angeles and we want to give LAX passengers the same transportation options that they have throughout our city," Garcetti said in a statement.

The move by the airport commissioners was a victory for Web-based ride-sharing companies such as Uber Technologies Inc [UBER.UL] and Lyft that have faced heated opposition from their rivals in the taxi industry. Los Angeles City Council could move to reverse the action, but that is not considered likely.

On Wednesday, a California Public Utilities Commission administrative law judge found an Uber subsidiary should be fined $7.3 million for failing to provide information on service and driver problems.

Drivers with ride-sharing companies could, under previous rules, drop off passengers at LAX. But airport authorities prohibited them from picking up passengers, reserving that service for taxis, limousines and shuttle buses.

As a result, passengers have climbed onto shuttle buses bound for nearby businesses and hailed ride-sharing drivers from those locations, Garcetti said.

Under the proposal adopted by the commission, ride-sharing services would be required to park in a designated staging area to pick up passengers.

They also would be required to pay the airport a $4 fee per trip, Garcetti said.

"We thank the Los Angeles World Airports Board and Mayor Garcetti for taking a big step in the right direction toward allowing consumers to choose Lyft at LAX," Lyft said in a statement.

LAX is the nation's second-largest air hub after Hartsfield-Jackson Atlanta International Airport. With the move, LAX would become the largest U.S. airport to allow ride-sharing pickups.

William Rouse, president of the Taxicab, Limousine & Paratransit Association of California, said ride-sharing drivers did not receive enough vetting.

"The airport commission has missed an opportunity to set an example for airports everywhere in protecting public safety and setting a level playing field," Rouse said.

Following the commission vote, ride-sharing companies will need to apply for a license to service LAX.

(Reporting by Alex Dobuzinskis; Editing by Peter Cooney)

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