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Airports’ Revenues Stay Grounded, Ride-Sharing is Culprit
While it’s easy to see what taxi companies have against ride-sharing companies, it’s not as obvious as to why airports would feel equally unenthused by Uber and Lyft. In fact, airports are facing similar struggles as the ride-sharing companies that poach taxi revenue inherently affect airports’ bottom lines.
Airports receive less fees from Uber and Lyft than they do taxis, and the companies also lessen the demand for flyers to have to pay to park their vehicle at the airport. Furthermore, less people feel the need to rent a car, which is another way that airports collect money through fees.
Various streams of revenue support airports, like food and beverage sites, stores, airline fees, and hotels. But, as the Federal Aviation Administration reported, in the last year, nearly 42% (or $9.6 billion) of airports’ revenue stemmed from parking and ground transportation. Another almost $1.8 billion came from rental car companies.
It goes without saying that autonomous vehicles will create another disruption to the airport industry.
For comments, questions or concerns, please contact Daniella Soloway
