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Uber may cut airport revenue

Ride-hailing companies such as Uber and Lyft already have struck a financial blow to their competitors in the taxi industry. Now many officials fear they may take a big bite out of airport parking revenue.

Rather than driving and leaving their cars at garages, a growing number of passengers are tapping their smart phone apps and turning to ride-hailing to get to and from the airport.

At some airports, proceeds from parking, which officials rely on to help keep the system up and running, are already taking a hit.

And airport officials worry the popular digital technology may have an impact not just on parking, but on revenue from taxis and rental cars as well.

Because many airports have only had formal agreements with the ride-hailing services, also called transportation network companies, for a year or two — or even less in some places — officials haven't had enough time to figure out exactly how their bottom line is affected, they say.

“Airport managers are just now coming to understand how this trend will impact them, and they are concerned,” said Carter Morris, an executive vice president for the American Association of Airport Executives.

Ride-hailing has skyrocketed since 2014, when a handful of U.S. airports first permitted it. Today, Lyft has agreements with nearly 240 airports and Uber has agreements with more than a hundred.

By Tribune News Service

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