Car-Sharing and Ride-Booking
An Introduction to the Services, Relevant Regulations, and
their Associated Challenges for Airports
Stephanie Box, Senior Consultant
Airport Ground Transportation Association Spring Meeting
April 28, 2014
Agenda
 Overview of Car-Sharing and Ride-Booking Services
 Regulations: State and City
 Airport Challenges and Responses
 Conclusions
http://en.wikipedia.org/wiki/Carsharing
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Car-Sharing and Ride-Booking Services: What are they?
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Car sharing services compete with existing rental car companies
Company Owned Vehicles
 Company-owned vehicle
fleets
 Access to any vehicle in
fleet using key fob, access
card, or phone application
 Started as short-term
(hourly) rentals
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Car sharing services compete with existing rental car companies
Company Owned Vehicles
Peer-to-Peer
 Personal vehicles rented
to others
 Often free airport parking
for owner
 Price typically set by
vehicle owner
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Car sharing services compete with existing rental car companies
Company Owned Vehicles
Peer-to-Peer
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Ride booking services compete with taxicabs and limousines
Company Owned Vehicles
 Smartphone application
hails licensed taxicab or
limousine
 Alternative to phoning a
taxicab or limousine
company
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Ride booking services compete with taxicabs and limousines
Company Owned Vehicles
Peer-to-Peer
 Smartphone application
connects customer to
driver using a personal
vehicle
 Often called
Transportation Network
Companies (TNCs)
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Ride booking services compete with taxicabs and limousines
Company Owned Vehicles
Peer-to-Peer
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Why are customers demanding these services?
 Convenience
― One-touch bookings
― One-stop car rentals
 Reliability
― Driver/vehicle displayed
― GPS tracking of approaching vehicle
― Automatic payment by credit card
 Cost
― Peer-to-peer services typically cost less
― Others similarly priced to traditional services
 Accountability
― Two-way reviews promote high quality service
passengers
renters
rate
drivers
owners
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Car-Sharing and Ride-Sharing Services are Expanding to Airports
Previously
 Primary markets:
— Universities
— Downtown urban
areas
 Customers became
accustomed to using
these services for local
travel
Currently
 Customers wish to use
these services for travel
to/from their local and
destination airports
 Companies are
responding by expanding
services to airports
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In Future
 More companies will seek
to expand to airports
around the country
 Airports must be prepared
for their arrival: ensure
customer service, safety,
and financial goals
continue to be met
Car-Sharing and Ride-Booking
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Regulations:
State and Cities
Regulators have typically taken one of three approaches
Unaware
Supportive
Restrictive
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California PUC created a new category for TNCs, September 2013
 Transportation Network Company (TNC) – An
organization that provides prearranged transportation
services for compensation using an online-enabled
application (app) or platform to connect passengers with
drivers using their personal vehicles.
Supportive
 Established 28 rules and regulations, including:
CPUC license to operate in California
Criminal background checks for drivers
Driver training program established
Zero-tolerance drug and alcohol policy
19-point inspection of all vehicles
Picture of driver and vehicle displayed through application
Minimum commercial liability insurance coverage of $1 million per incident
Cannot operate at any airport unless authorized by the airport authority
Source: California Public Utilities Commission website, accessed October 2013.
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Some authorities are limiting ride-booking services
Restrictive
City of Seattle
Cap on active drivers per TNC
suspended by petition
Illinois
• Rates limited to taxi
maximum rates
• Chauffeur permit
City of Austin
• Advanced reservation
• Chauffeur permit
• High minimum fare
City of Portland
Advanced
reservation
WASHINGTON
MONTANA
Nevada
High minimum
hourly rates
NORTH
DAKOTA
MAINE
MINNESOTA
VT
OREGON
NH
WISCONSIN
SOUTH
DAKOTA
IDAHO
MICHIGAN
WYOMING
RI
CONN
IOWA
PENN
NEBRASKA
NEVADA
OHIO
UTAH
ILLINOIS
MARYLAND
WV
KANSAS
VIRGINIA
MISSOURI
KENTUCKY
CALIFORNIA
OKLAHOMA
NORTH
CAROLINA
TENNESSEE
ARKANSAS
SOUTH
CAROLINA
NEW MEXICO
MISS
NEW JERSEY
DELAWARE
INDIANA
COLORADO
ARIZONA
MASS
NEW YORK
Miami
• Advanced
reservation
• High minimum
hourly rates
GEORGIA
ALABAMA
TEXAS
LOUISIANA
FLORIDA
ALASKA
HAWAII
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Airport Challenges and Responses
Accommodating new services while maintaining airport goals
 Assure safe, secure transportation
 Offer transportation that is available at a range of costs and service levels
 Maintain efficient landside operations
 Preserve airport revenues
 Provide opportunities for new businesses while recognizing existing
agreements
http://de.wikipedia.org/wiki/DriveNow
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SFO is one of the first airports at which services began operating
2012 and
Earlier
The Industry Develops
 Many ride-sharing
companies founded in
the San Francisco Bay
Area
 SFO staff begin to
receive requests from
companies to operate
on-Airport
Early
2013
March
2013
Services Begin at SFO
 ZipCar begins
operations at SFO
through Avis
 FlightCar begins
advertising free offAirport parking and
peer-to-peer car
rentals
Enforcement
 Cease and desist
letters to six
companies
Regulation
 CPUC adopts TNC
regulations
 Drivers of unlicensed
vehicles begin to be
cited and arrested
 RelayRides agrees to
pay fees and follow
SFO rules and
regulations
 SFO sues FlightCar for
non-compliance with
regulations
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Fall
2013
 Uber agrees to create
a geofence around
the airport
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SFO has implemented a TNC permit pilot program
Today
2014





TNC Permit Pilot Program
Drop-off only
Valid until May 31, 2015
Must have CPUC permit
Provide TNC driver list
Vehicle tracking on-Airport
 Per trip fees and monthly permit fees
 Cease & desist enforced for TNCs not
authorized by airport
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Other airports have taken a similar approach
Oakland International
Boston Logan International
 TNCs:
 TNCs:
― Sheriff department incorporating
No regulations in place
TNCs into training program
― Citations given to drivers waiting
in commercial vehicle hold area
 Car-sharing:
Avis pays fees on all ZipCar rentals
plus additional subtenant rent
Los Angeles International
Phoenix International
 TNCs:
 TNCs and UberBlack, UberSUV:
― Reached out to companies, sent
Ticketed if identified at the airport;
some vehicles impounded
rules and regulations, categorized
them as pre-arranged
― Uber implementing geofence
― Designated hold lot for waiting
vehicles; citations issued to those
in other locations
 Peer-to-Peer Rentals:
RelayRides and FlightCar use offairport parking operator spaces and
buses; no agreements in place
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Summary
Conclusions
 Many companies with varying business models and markets
 Companies are becoming increasingly common
 Each type of service presents unique challenges for airports
 Airports need to be proactive in determining how to best accommodate
these businesses
www.facebook.com/lyft/photos_stream
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Stephanie Box
stephanie.box@leighfisher.com
www.leighfisher.com