Car-Sharing and Ride-Booking An Introduction to the Services, Relevant Regulations, and their Associated Challenges for Airports Stephanie Box, Senior.

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Presentation transcript:

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

2 Car-Sharing and Ride-Booking AGTA Spring Meeting  Overview of Car-Sharing and Ride-Booking Services  Regulations: State and City  Airport Challenges and Responses  Conclusions Agenda

3 Car-Sharing and Ride-Booking AGTA Spring Meeting Car-Sharing and Ride-Booking Services: What are they?

4 Car-Sharing and Ride-Booking AGTA Spring Meeting 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

5 Car-Sharing and Ride-Booking AGTA Spring Meeting Company Owned Vehicles Car sharing services compete with existing rental car companies Peer-to-Peer  Personal vehicles rented to others  Often free airport parking for owner  Price typically set by vehicle owner

6 Car-Sharing and Ride-Booking AGTA Spring Meeting Company Owned Vehicles Car sharing services compete with existing rental car companies Peer-to-Peer

7 Car-Sharing and Ride-Booking AGTA Spring Meeting Company Owned Vehicles Ride booking services compete with taxicabs and limousines  Smartphone application hails licensed taxicab or limousine  Alternative to phoning a taxicab or limousine company

8 Car-Sharing and Ride-Booking AGTA Spring Meeting Company Owned Vehicles Ride booking services compete with taxicabs and limousines Peer-to-Peer  Smartphone application connects customer to driver using a personal vehicle  Often called Transportation Network Companies (TNCs)

9 Car-Sharing and Ride-Booking AGTA Spring Meeting Company Owned Vehicles Ride booking services compete with taxicabs and limousines Peer-to-Peer

10 Car-Sharing and Ride-Booking AGTA Spring Meeting 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 rate passengers owners renters drivers

11 Car-Sharing and Ride-Booking AGTA Spring Meeting 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

13 Car-Sharing and Ride-Booking AGTA Spring Meeting Restrictive Supportive Unaware Regulators have typically taken one of three approaches

14 Car-Sharing and Ride-Booking AGTA Spring Meeting 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  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

15 Car-Sharing and Ride-Booking AGTA Spring Meeting Restrictive Some authorities are limiting ride-booking services HAWAII ALASKA MONTANA WYOMING IDAHO WASHINGTON OREGON NEVADA UTAH CALIFORNIA ARIZONA NORTH DAKOTA SOUTH DAKOTA NEBRASKA COLORADO NEW MEXICO TEXAS OKLAHOMA KANSAS ARKANSAS LOUISIANA MISSOURI IOWA MINNESOTA WISCONSIN ILLINOIS INDIANA KENTUCKY TENNESSEE MISS ALABAMA GEORGIA FLORIDA SOUTH CAROLINA NORTH CAROLINA VIRGINIA WV OHIO MICHIGAN NEW YORK PENN MARYLAND DELAWARE NEW JERSEY RI MASS MAINE VT NH CONN City of Portland Advanced reservation Nevada High minimum hourly rates City of Seattle Cap 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

17 Car-Sharing and Ride-Booking AGTA Spring Meeting 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

18 Car-Sharing and Ride-Booking AGTA Spring Meeting 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 Fall 2013 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

19 Car-Sharing and Ride-Booking AGTA Spring Meeting 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

20 Car-Sharing and Ride-Booking AGTA Spring Meeting 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

22 Car-Sharing and Ride-Booking AGTA Spring Meeting 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

Stephanie Box