car-sharing and ride-booking

Car-Sharing and Ride-BookingAn Introduction to the Services, Relevant Regulations, and their Associated Challenges for Airports

Stephanie Box, Senior Consultant

Airport Ground Transportation Association Spring MeetingApril 28, 2014

2 Car-Sharing and Ride-BookingAGTA Spring Meeting

Overview of Car-Sharing and Ride-Booking Services

Regulations: State and City

Airport Challenges and Responses

Conclusions

Agenda

http://en.wikipedia.org/wiki/Carsharing


Car-Sharing and Ride-Booking Services: What are they?


Company Owned Vehicles

Car sharing services compete with existing rental car companies

Company-owned vehicle fleets

Access to any vehicle in fleet using key fob, access card, or phone application

Started as short-term (hourly) rentals




Peer-to-Peer

Personal vehicles rented to others

Often free airport parking for owner

Price typically set by vehicle owner




Peer-to-Peer



Ride booking services compete with taxicabs and limousines

Smartphone application hails licensed taxicab or limousine

Alternative to phoning a taxicab or limousine company




Peer-to-Peer

Smartphone application connects customer to driver using a personal vehicle

Often called Transportation Network Companies (TNCs)




Peer-to-Peer


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

ratepassengers

ownersrenters

drivers


Car-Sharing and Ride-Sharing Services are Expanding to Airports

Primary markets:— Universities— Downtown urban

areas

Customers became accustomed to using these services for local travel

Customers wish to use these services for travel to/from their local and destination airports

Companies are responding by expanding services to airports

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

In FutureCurrentlyPreviously

Regulations: State and Cities


Restrictive

Supportive

Unaware

Regulators have typically taken one of three approaches


Supportive

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.

Source: California Public Utilities Commission website, accessed October 2013. Source: California Public Utilities Commission website, accessed October 2013.

Established 28 rules and regulations, including:CPUC license to operate in CaliforniaCriminal background checks for driversDriver training program establishedZero-tolerance drug and alcohol policy19-point inspection of all vehiclesPicture of driver and vehicle displayed through application Minimum commercial liability insurance coverage of $1 million per incidentCannot operate at any airport unless authorized by the airport authority


Restrictive

Some authorities are limiting ride-booking services

HAWAII

ALASKA

MONTANA

WYOMING

IDAHO

WASHINGTON

OREGON

NEVADA

UTAH

CALIFORNIA

ARIZONA

NORTH DAKOTA

SOUTHDAKOTA

NEBRASKA

COLORADO

NEW MEXICO

TEXAS

OKLAHOMA

KANSAS

ARKANSAS

LOUISIANA

MISSOURI

IOWA

MINNESOTA

WISCONSIN

ILLINOIS INDIANA

KENTUCKY

TENNESSEE

MISS

ALABAMAGEORGIA

FLORIDA

SOUTHCAROLINA

NORTHCAROLINA

VIRGINIA

WV

OHIO

MICHIGANNEW YORK

PENN

MARYLAND

DELAWARE

NEW JERSEY

RI

MASS

MAINE

VT

NH

CONN

City of PortlandAdvanced

reservation

NevadaHigh minimum

hourly rates

City of SeattleCap on active drivers per TNC

suspended by petition

City of Austin•Advanced reservation•Chauffeur permit•High minimum fare

Illinois• Rates limited to taxi

maximum rates• Chauffeur permit

Miami• Advanced

reservation• High minimum

hourly rates

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


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

Services Begin at SFO ZipCar begins

operations at SFO through Avis

FlightCar begins advertising free off-Airport parking and peer-to-peer car rentals

March 2013

Enforcement Cease and desist

letters to six companies

Drivers of unlicensed vehicles begin to be cited and arrested

SFO sues FlightCar for non-compliance with regulations

Fall2013

Regulation CPUC adopts TNC

regulations

RelayRides agrees to pay fees and follow SFO rules and regulations

Uber agrees to create

a geofence around the airport


SFO has implemented a TNC permit pilot program

Today2014

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


Boston Logan International TNCs:

No regulations in place Car-sharing:

Avis pays fees on all ZipCar rentals plus additional subtenant rent

Other airports have taken a similar approach

Los Angeles International TNCs:

Ticketed if identified at the airport; some vehicles impounded

Peer-to-Peer Rentals:

RelayRides and FlightCar use off-airport parking operator spaces and buses; no agreements in place

Oakland International TNCs:

― Sheriff department incorporating TNCs into training program

― Citations given to drivers waiting in commercial vehicle hold area

Phoenix International TNCs and UberBlack, UberSUV:

― Reached out to companies, sent rules and regulations, categorized them as pre-arranged

― Uber implementing geofence― Designated hold lot for waiting

vehicles; citations issued to those in other locations

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

www.leighfisher.com

Stephanie [email protected]

car-sharing and ride-booking

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