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Uber, GNV may sever ties after rider rate increase

The Gainesville Sun - 11/24/2020

Nov. 24--Plane passengers arriving in Gainesville who need to be picked up from the terminal may have one fewer option in 2021, after one company said it could sever ties with the airport following a rate increase.

Gainesville Regional Airport is raising its transportation network companies rate -- a fee paid by riders picked up by private ride services at the airport -- from $1 to $3 per ride. The new rate will go into effect Jan. 1, 2021.

Uber, one of the companies that has a contract to pick up riders at the airport, said increasing the rate in the middle of the coronavirus pandemic will not be good for business. It's considering not renewing its contract if a compromise can't be reached.

"The reality is that we understand the airport needs to raise fees at some point, but we think the timing is not good, given that demand is nowhere near pre-pandemic levels," said Javier Correoso, public affairs manager for Uber in Florida. "By proposing this increase, it means that those who rely on Uber or these other services will be suddenly facing a 200% fee increase."

Correoso said the fee at Miami International Airport is $2 and the fee at Southwest Florida International Airport in Fort Myers is $3. Uber has been operating out of the Gainesville airport at the $1 rate since October 2015.

"What we're really concerned about is increasing the costs to consumers during the pandemic," he said. "This is the first time we've dealt with an airport fee increase proposal during the pandemic. Most of the airports around the country have been willing to work with us and are understanding."

He said Uber has tried to coordinate a time to negotiate a better timeline to begin the rate increase with airport leadership, but that the airport has not listened to the company's efforts to be heard, which was "disheartening."

Lyft, the other ride-hailing service that has a contract with the airport, sent a statement to The Sun that said it was "disappointed that GNV has chosen to move ahead with adding new fees during this challenging economic period for riders and drivers."

"We remain focused on ensuring all travelers can access affordable and reliable rides, and look forward to continuing conversations with officials at GNV," a Lyft spokesperson said. Lyft is in the process of renewing its contract with the airport.

The Sun also reached out to several local taxi cab services but none responded to requests for comment.

Airport spokeswoman Erin Porter said the companies were notified of the rate increase in July 2019, long before the pandemic began.

The new rate of $3 per ride was originally supposed to go into effect in October 2019, though the fee increase was postponed several times, Porter said, to give taxi drivers time to understand the rate requirements and the impact it would have on them.

"The TNC fee is paid by the consumer, not Uber, nor their drivers," Porter said. "In addition, where many airports charge both a pickup and a drop-off fee, and always have, GNV has only charged a pickup fee... The $3 fee is a small fraction of the total cost of the trip to the consumer."

Porter said that business at the airport was down about 60% in October compared with October 2019. The airport set a travel record in 2019, with more than a half-million total passengers last year.

"Everybody in this industry is in the same boat," she said. "Our TNC fees at GNV are among the lowest, and we strive to keep fees as low as we can."

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