Uber, Lyft’s Dreaded Fee Hike: 'Yes' From Phoenix City Council

PHOENIX, AZ — The Phoenix City Council Wednesday voted 7-2 in favor of the rideshare fee increase that previously motivated Uber and Lyft to threaten to cease operations at Sky Harbor International Airport. The proposed fee would raise rideshare patrons’ fees from $2.66 for a pick-up fee to $4 for both pickups and drop-offs at the airport, starting Feb. 1.

Starting in 2021, the fee would rise in yearly increments to $4.25, $4.50, $4.75 and eventually to $5 in 2024.

The rideshare fees are needed by Sky Harbor Airport, as it doesn’t receive any revenue from taxes, city officials say.

Meanwhile Lyft threatened in November to pull out of Sky Harbor Airport if the fee increase was approved by the city council, saying the new fee increase would “punish” and “unfairly burden” riders, Patch.com reported previously.

Uber Global Airport Partnerships Manager Chris Garcia followed suit Friday, also writing a letter to James Bennett, City of Phoenix aviation department director. The Uber letter, published in its entirety on azcentral.com, mentions a rideshare fee study that Uber “partnered” with Phoenix staff to develop over about a year. However, Garcia then wrote that the airport officials set aside the study and “pursued an entirely separate effort to hike fees on ridesharing users to the highest level of any airport in the United States.

“The airport’s plan unfairly penalizes all those who rely on ridesharing to get to or from PHX by asking them to bear a disproportionate share of costs associated with the Sky Train … a transportation option that they are not using.” Garcia also wrote, “On behalf of the riders and drivers who rely on Uber, we cannot accept a partnership that unfairly burdens our shared passengers.”

However, Garcia’s Uber letter also mentions a desire to collaborate with the Phoenix aviation department. “I am writing to you to once again reiterate our willingness to work with you and your staff to identify a better solution that does not unfairly target those who rely on ridesharing. If the Phoenix City Council approves the ground transportation fee structure currently recommended by PHX, Uber will be forced to cease operations at Phoenix Sky Harbor Airport effective January 2020.”

Phoenix City Councilman Sal DiCiccio, an outspoken opponent of the ridesharing fee hike, issued a statement after the vote Wednesday: "Despite learning that it is in direct violation of the Arizona constitution, the politicians at City Hall voted once again to pass this horrible new tax on rideshare. This will absolutely be overturned by the courts, and what the politicians did today is just take more money out of your pocket to pay for a futile lawsuit and screw over everyone who uses Uber and Lyft to get to the airport."

But not all Uber passengers — some of whom are also Uber drivers — are worried about the fee hike. An Uber driver told azfamily.com, "Extra $4 shouldn't be a big deal? Not to me, I'm a passenger all the time. Four bucks, extra money to go to the airport is nothing."

Diana, a frequent business traveler also told azfamily.com, "The convenience is absolutely fantastic, and I would miss the services very much if they left the Phoenix area."

The next moves are up to Uber and Lyft officials.