Ride-hailing companies Uber and Lyft they won’t change their service at Phoenix Sky Harbor International Airport until Arizona’s highest court rules on proposed increases to pick up and drop off customers.
Ride-hailing companies Uber and Lyft say they won’t change their service at Phoenix Sky Harbor International Airport until Arizona’s highest court rules on proposed fee increases that prompted threats to stop picking up and dropping off customers at one of the nation’s largest airports.
Both companies issued statements Wednesday confirming operations will continue while they wait for the Arizona Supreme Court to rule. The court on March 26 will hear arguments to a challenge of a city ordinance that raised the companies’ fees by $4 for rides to and from the airport.
Uber and Lyft had threatened to stop providing airport services if the fees took effect Saturday as originally planned.
The Phoenix City Council approved the fees, arguing they were much like rent and landing fees charged to restaurants and airlines at Sky Harbor, which serves some 44 million passengers a year. It later decided to hold off until the high court weighed in.
Arizona Attorney General Mark Brnovich has sought to overturn the ordinance, arguing it is “very likely” unconstitutional and probably violated a 2018 ballot measure prohibiting higher taxes on services.
Phoenix could lose its share of state revenue — a third of its general fund budget — if the fee hike is found to be illegal.