Uber threatens to leave Phoenix's Sky Harbor Airport Sky Harbor; city delays fee increase

Phoenix will hold off on raising the fees that Uber and Lyft passengers pay for Sky Harbor Airport rides until the Arizona Supreme Court decides whether the increase violates state law.

The City Council made the decision after discussing the matter with lawyers in a special meeting on Jan. 22.

"After today’s meeting the city had a teleconference with the Arizona Supreme Court and the city voluntarily agreed to delay the effective date of the fees until after the Supreme Court makes its decision. Currently, it is business as usual at Sky Harbor Airport for customers who need ground transportation to get to and from the city-owned airport," city spokeswoman Julie Watters said in an emailed statement.

The decision came after Uber said on Jan. 21 that it would stop serving Phoenix Sky Harbor International Airport at 11:59 p.m. Jan. 31 unless a court stopped the fee increase on ride-share companies.

"Please accept this letter as official notice from Uber Technologies Inc. that, in the event the Airport or City does not place a hold on the implementation of the proposed TNC fee increase, or a legal stay is not granted, we will be ceasing all operations at Phoenix Sky Harbor International Airport effective 11:59 p.m. on Friday, January 31st, 2020," Chris Garcia, Uber's global airport partnerships manager, wrote in a letter that Uber says it delivered Tuesday afternoon.

More: Phoenix airport's Uber/Lyft fee increase just passed – again. Here's what you'll pay

Uber declined to provide additional comment. The city said it had not received a similar statement from Lyft.

The fees for Uber and Lyft to pick up and drop off passengers at the airport were set to increase to $4 per trip on Feb. 1. The additional money would help fund the airport's infrastructure.

Arizona Attorney General Mark Brnovich filed a motion with the Arizona Supreme Court on Wednesday asking for a stay on the fee until the court can rule on whether it violates state law. Last week, Brnovich announced he was asking the court to review the fees, which he feels are illegal.

How did the fee increase happen?

The city council voted in December to increase the fee after a yearlong study of what ride-share companies pay at Sky Harbor compared with other U.S. airports.

As part of the study, a committee met with industry stakeholders and compared fees at other airports. It found that many airports were charging for both pick-ups and drop-offs and recouping more of their infrastructure costs.

Sky Harbor was charging only for pick-ups. Airports in Baltimore, Denver, Dallas, Detroit, Las Vegas, Los Angeles, Philadelphia, San Francisco and other cities charge for all trips.

In addition, airports such as Las Vegas and Los Angeles require ride-share customers to be picked up away from the terminal to alleviate traffic congestion. The committee decided to continue to allow Phoenix customers to be picked up and dropped off at the terminal, but to offer riders who elect to be dropped off at the 44th Street PHX Sky Train station a smaller fee increase.

How the fees will work

Currently, Uber and Lyft users pay a $2.66 fee (in addition to the ride fare) to be picked up at Sky Harbor. There is no charge to be dropped off. Starting Feb. 1, the fee will be $4 per drop-off and pick-up.

The fee will increase annually:

• $4.25 in 2021.

• $4.50 in 2022.

• $4.75 in 2023.

• $5 in 2024.

Riders will pay less to be picked up or dropped off at the Sky Train station. Those riders would pay a $2.80 fee each way and ride the Sky Train shuttle to the terminals. Shuttles come every three to five minutes. The airport hopes this option will reduce congestion at the terminals.

Fee on taxis, shuttles and buses

Taxis, shuttles and buses also currently pay fees to pick up passengers at to the airport. The vote will require them to pay a drop-off fee as well, but it reduces their fees overall. The new charge for a taxi is $1.75 each way, $2.25 for a shuttle and $5 for a charter bus. These services also face additional regulations that Uber and Lyft do not.

Bennett said taxi companies bid competitively on contracts to serve the airport. In addition to the fees, those contracts require:

• Transportation operators can't pass the fees on to customers.

• They must have a letter of credit.

• They must provide service 24 hours a day, seven days a week, 365 days a year.

• No one can wait longer than 5 minutes for pick-up.

• Fares are set by city code and surge pricing is not allowed.

• Rules for how quickly lost items are returned to riders.

• Vehicles must undergo inspections and meet age requirements.

• The use of alternative fuel vehicles.

• Drivers must pass a written test, an FBI check and a TSA threat assessment.

• The companies must be able accommodate passengers under the Americans with Disability Act.

You can connect with Arizona Republic Consumer Travel Reporter Melissa Yeager at melissa.yeager@azcentral.com. You can also follow her on Twitter and Instagram.

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This article originally appeared on Arizona Republic: Uber threatens to leave Phoenix airport; city delays fee increase