The plan to let Uber and Lyft bring their ride-sharing services to Los Angeles International Airport appears to have hit a snag.
As reported by Forbes on Thursday (Aug. 6), the L.A. City Council is putting the brakes on the move, which had been announced by Mayor Eric Garcetti back in April of this year, and was set to begin next month. The council voted on Wednesday (Aug. 5) to “further examine” the ride-sharing model and whether to overrule the airport’s decision to let the companies operate there.
Forbes noted that the Uber and Lyft permits are going to be examined by the committee on Aug. 18, with a ruling coming from the entire council “at some point” after that examination.
As had been reported by the financial publication, Paul Koretz, who serves on the L.A. City Council, has referred to both Uber and Lyft as “bandit cabs with apps.” “Other [members of the council],” as Forbes noted, “have responded to reports of safety concerns over driver screenings.”
Separately, the business expense management company Certify reported that one of those companies, Uber, accounted for 54 percent of all rides among its clients in L.A. alone, Forbes said.
In an interview with Forbes, an unnamed Uber spokesperson was sanguine toward the company’s prospects. “It’s not a rejection of approval. It’s an opportunity for the city council to weigh in,” the spokesperson said. “We welcome a conversation with the members of the city council, and we look forward to picking up passengers at LAX.”
In the article detailing the possible snags at LAX, Forbes reported that the Los Angeles Times found that since 2013, as many as eight L.A. taxi companies collectively spent $595,500 to lobby Los Angeles officials. Of that amount, the Times found, the funding included over $25,000 paid to a vast majority, or 13 of the 15, of current city council members. Uber and Lyft collectively spent $392,000 over the past two years, Forbes said.
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