Transportation Network Companies Airport Access Recommendations. Board of Airport Commissioners December 18, 2014

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Christal Francis
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1 Transportation Network Companies Airport Access Recommendations Board of Airport Commissioners December 18, 2014

2 Objectives 1. Respond to Mayor Garcetti s September 25, 2014 letter seeking recommendations regarding Transportation Network Companies (TNCs) at LAX TNCs are state-enabled companies using smartphone technology to match private vehicles willing to host passengers with passengers seeking ride-sharing services through companies like Lyft, Sidecar, and Uber. 2. Expand airport passengers transportation choices 3. Regulate and manage TNC use of LAWA property through enforceable agreements 4. Promote fair competition among transportation companies in both regulations and fees 5. Generate revenue from commercial users of LAWA property on a level playing field among competitors 6. Achieve the above consistent with traffic management objectives at LAX 7. Provide a safe environment for all transportation riders 1

3 LAX - Commercial Transportation Providers 1. Drop-off Currently, all types of commercial users access LAX to drop-off passengers without license agreements or fees: Taxis from all jurisdictions, shared-ride vans, TCPs, TNCs, private bus operators, etc. 2. Pick-up City taxis 9 City franchise cab companies have license agreements Taxi consortium leases and operates the taxi cab pool and dispatch/queuing services Shared Ride Vans (SRV) Only 3 companies have concession agreements, as LAWA manages the number of these operators Companies stage in a shared area outside the Central Terminal Area (CTA) Pay trip fees with an annual guarantee, for two of the three, providing recovery of all costs Limos/Town Cars/Charter Buses (TCPs or charter party carriers) Over 3200 operators currently have non-exclusive license agreements (NELAs) Use the Commercial Vehicle Holding Lot (CVHL) outside the CTA Pay trip fees without any annual guarantee Scheduled Buses Fewer than 10 companies currently have NELAs and use the CVHL Pay trip fees without any annual guarantee Hotel, Private Parking, Rental Car and Other Courtesy Shuttles Over 60 operators currently have NELAs Rental Car shuttles have annual guarantees; all others pay trip fees without any annual guarantee 2

4 LAX Passenger Access Patterns Passenger use shares: Private vehicles 51% Taxis 8% Shared Ride Vans 7% Limos/Town Cars 2% Charter bus/van 1% Courtesy shuttles, FlyAway, public transit 31% LAX passengers, in large number, continue to use private vehicle for pick-up and drop-off, which contributes to greater traffic/congestion As compared to private vehicle pick-up/drop-off, greater use of commercial alternatives would more efficiently use LAX facilities Successful TNC operations would provide a viable and effective choice for some private vehicle users 3

5 TNC Program Recommended NELA Features LAWA circulated a draft TNC NELA for stakeholder comment in May 2014 and considered the comments received from the public and other commercial operators Since that time other major airport operators have developed their own TNC programs The following features are recommended for the LAX TNC NELA: Upper Level TNCs would only be permitted to operate on upper level of the CTA Vehicle Cap Each TNC would have a limit on the number of unassigned vehicles inside the geo fence at any time, currently contemplated to be in the range and which would be subject to reset if warranted Staging Unassigned TNC vehicles would be required to stage in the CVHL inside the geo fence Fees TNCs would be required to pay $4.00 per trip when crossing geo fence and would pay regardless of pick-up or drop-off (i.e., a trip with both would pay twice as it is at SFO) Privilege Fee/Guarantee TNCs would have a Minimum Monthly Guarantee, subject to monthly reconciliation, estimated to be in the $15,000-$25,000 range Insurance Required at the level set by recent state law Shared Rides Until an evaluation period is completed, TNCs would be prohibited from pickingup more than one party per CTA trip, given agreements with SRV concessionaires Term Three-years 4

6 Next Steps 1. Finalize LAX TNC NELA for Board consideration in January Expands choices for passengers and promotes competition Establishes a regulatory and management framework for TNC Eliminates any undue cost advantages of TNCs Enables consistent, predictable, and reliable enforcement of LAX rules and regulations 2. Resolve certain issues arising from dual-licensed vehicles (e.g., TNC operators that are also TCPs or TNC operators that serve two TNC companies) 3. Work with the City Taxi Commission to allow taxis to be more competitive Update LAWA s 1-in-5 day rule to match desires of taxi industry Create the opportunity to increase size of the taxi pool staging area Evaluate management options allowing short trip direct return to terminal 4. Develop streamlined version of the LAX TNC NELA for ONT 5

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