If you take an Uber or Lyft from Los Angeles International Airport (LAX), your ride could soon cost more.
The Los Angeles Board of Airport Commissioners on Tuesday approved an increase in rideshare fees, raising the charge from $4 to as much as $12 per trip — a move Uber is warning will impact both riders and drivers, FOX 11 reported.
Under the new plan, rideshare vehicles will pay a $6 base fee to enter LAX. An additional $6 fee will apply for pickups or drop-offs at the airport’s Central Terminal Area, according to FOX 11.
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Right now, rideshare companies pay about $4 per pickup or drop-off. Taxi companies pay $4 for pickups, while limousines pay $5. Taxis and limos are not charged for drop-offs, according to FOX 11.
Airport officials say the higher fees are meant to reduce traffic congestion and encourage travelers to use the airport’s new SkyLink automated people mover once it opens, according to ABC7 Los Angeles.
“To be able to be dropped off there will be a $2 increase to the ride-share companies,” Vanessa Rodriguez, deputy executive director of external affairs at Los Angeles World Airports, told ABC7 Los Angeles. “As the new front door to the airport, essentially a traveler will be able to get on the SkyLink train and do the full loop of the horseshoe in 10 minutes.”
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However, Uber says the fee will be passed directly on to all travelers and would be nearly triple the $4.24 average across major U.S. airports.
“The board’s decision significantly increases the cost of getting to and from LAX,” Danielle Lam, head of local California policy at Uber, told FOX Business in an email. “A 140% fee hike will directly impact riders and reduce demand for drivers who rely on airport trips.”
Higher passenger fees usually reduce demand for airport trips, limiting drivers’ earning opportunities. The proposed LAX fee increase could result in approximately $1,000 in lost earnings per driver each quarter, according to Uber.
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“We support investments that improve the airport experience, but they must be transparent and balanced,” Lam added.
Los Angeles World Airports and Lyft did not immediately respond to FOX Business’ request for comment.
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