LA is Looking at Increasing Fees for Taxis and Ride-Hailing Services at LAX
Los Angeles Plans Fee Hike for Ride-Hailing Services at LAX
Los Angeles International Airport (LAX) is poised to implement increased fees for ride-hailing and limousine services, as city officials prepare to discuss the proposal at a special meeting on Tuesday. The new fees are intended to help reduce traffic congestion in the airport’s central terminal area and promote the use of a forthcoming people-mover system, set to open later this year or next.
The Los Angeles Board of Police Commissioners will convene to review these proposed fee adjustments, which have not been modified in a decade. A report by Los Angeles World Airports (LAWA) states, "The fees Los Angeles World Airports charges to FHVs (for-hire vehicles) have not changed in 10 years and no longer reflect the value of the airport market, especially given the multibillion-dollar investments in LAX landside access, terminals, and other facilities and amenities."
Despite being the world’s busiest origin-and-destination airport, LAX’s fees remain lower than those at comparable domestic airports, including San Francisco International Airport and Boston Logan International Airport. The report underscores the need for an updated fee structure to ensure that all operators contribute fairly, particularly those currently exempt from drop-off fees.
Currently, ride-hailing companies like Uber and Lyft are charged about $4 for both passenger pick-ups and drop-offs at LAX. Taxi companies pay the same fee for pick-ups, while limousines incur a higher charge of $5. Notably, taxis and limousines are currently free of charge for drop-offs.
If approved, the new fee structure would establish a base rate of $6 for all services at LAX, with an increase to $12 for pick-ups or drop-offs within the central terminal area once the SkyLink system becomes operational. LAWA anticipates that these fees will ultimately be passed on to passengers. The proposal aims to encourage use of the SkyLink system, which is intended to alleviate congestion in the terminal area. Additionally, the board will consider a proposal to limit the percentage of passengers that taxi and ride-hailing services can drop off in the central terminal.
"This proposed base access fee establishes a clear, uniform framework under which all low-occupancy FHVs contribute proportionately to the value of operating at one of the world’s most significant aviation gateways," the staff report emphasizes.
However, the proposed hikes have drawn criticism from transportation companies. Danielle Lam, Uber’s head of local California policy, labeled the potential 140% increase "indefensible." In a statement to Southern California News Group, she expressed concern that raising the fee to $12 would disproportionately affect travelers, including working families and seniors, who rely on affordable transportation. Lam affirmed Uber’s support for improving LAX but emphasized that such improvements should not come at the expense of the riders who help sustain the airport’s operations.
