Sydney Airport UberX passengers to be charged $4 pickup fee

No, it would be completely fair for the airport pick-up fee to be dropped altogether - both for taxis and Uber.

This fee simply represents yet another rent-seeker charge on passengers using the terminals. Please tell me where else has the hide to charge for being picked up whether it be a taxi of Uber. Doesn't happen on George Street or anywhere esle to my knowledge.

Sydney Airport Corporation makes a killing out of self-drive parking at the airport, not to mention Taxi surcharges and the ludicrous Airport station access fees. It is almost impossible to get to the airport unless you use the highly undesirable Route 400 bus from Bondi to Burwood via the airport.

I'm going to have to disagree.

You are correct that few other premises charge an access fee for taxi ranks, which is a strong argument, BUT you haven't followed the process from start to finish. I think this may be because most people don't have enough information to understand how that fee works.

Let me explain:

• Any taxi dropping off at the airport either has the choice of immediately leaving the area empty, OR waiting for a new fare. The most popular option is to wait for a new fare, and a huge number of cabs will drive around to a waiting area before being called up to the taxi rank by controllers.
• Taxis at airports utilise a large holding facility (essentially a gigantic, exclusive "taxi carpark"), which is provided by the airport operators.
• Given that taxis entering that facility can often wait hours before being called to the airport rank, depending on how busy it is, the holding areas usually contain facilities and amenities for cab drivers while they wait.
• These driver waiting facilities include canteen, bathrooms, showers, car cleaning areas, social areas, and in some locations even small movie rooms. (Obviously this costs money, so the airport charges a small fee for its running costs and upkeep.)
• Once their number is called (similar to taking a ticket at the supermarket deli), they can go back to their cab, and drive around to the arrivals-area taxi ranks for a new fare.
• The upside for taxi drivers is that there is guaranteed work, the downside is they have to wait a long time for it (which is why they get angry if passengers take short-distance fares).
• Uber drivers do not utilise these facilities, so you could argue that they shouldn't pay an airport access fee. Unfortunately, Uber drivers (who operate on a lower cost model), hover around the airport fringe, clogging up roads and local carparks, waiting for bookings.

(When you drive down Joyce Drive at Sydney Airport, the free carpark between McDonalds and KFC is crushed full of Uber drivers waiting in their cars to collect a fare.)

Thus, it would be appropriate for Uber drivers to either pay a fee and be provided a dedicated waiting area, or not collect fares from the airport at all.

This is fair for all stakeholders:

• The airport provides a service (as they do for taxis) and recover their costs.
• Taxis aren't put at an unfair disadvantage because their rivals avoid the airport service fee.
• Uber is accomodated by the airport, and has a dedicated waiting space.
• The customer has more flexible transport options, and it only cost a few dollars extra.

It would be unfair to drop the fee altogether, because then the airport operator would have to spread the taxi facility costs across ALL customers, not just the ones taking a cab...

So there you go...

I'm going to have to say that blaming Uber for Sydney Airports traffic problems is just complete nonsense.

Way before Uber was around and still to this current day the infrastructure is woefully inadequate to serve the number of vehicles entering and exiting the site.

For examples sake, and I'm rounding up here, 5% of the total traffic is hardly going to make a noticeable difference as you would suggest.

With respect... You've ignored everything I've just explained, to argue some irrelevant point about traffic jams that I'm not interested in.

I'm obviously not blaming Uber for Sydney Airport's traffic woes.

So what you just said is I’m paying for a taxi driver to use a car park and facilities. Sick of costs being passed on to the consumer. Greed. Can you come to my work and pay for my parking so i can earn a wage...thanks

Great post Jay! Finally someone with a sensible business-focussed approach to the issue rather than another emotive airport or airline  bashing post that is becoming the norm on here. I think a lot of people posting on this site must work for non-profits or government these days.

Kimshep, a couple of other issues with your posts that need to be addressed are:

The taxi fee model applies across all the major Australian airports, so it's not something unique to Sydney Airport. You catch a taxi from an airport in Australia, you'll pay a fee for this privilege (well the taxi driver does but as an industry they choose to pass this onto the customer in full).

Westpac bought AirportLink from the receivers of the original Airport Link Company. MAP and Macquarie never owned Airport Link, nor did they make a substantial profit when it was sold to Westpac. It was reported at the time of the sale that Macquarie was an underbidder in that sale process - you don't bid for something you already own. I suggest you do some research on the historic ownership structure next time before you perpetuate something which is blatantly wrong.

The NSW Government is the primary beneficiary of the money generated by the station access fee now - it receives 85% of net access fee revenue (gross proceeds less some allowances to operate the stations etc). It is a NSW Government issue.

Thanks ausdt,

It always astonishes me how many supposed "business travellers" on AusBT actually appear to have limited or no business sense at all.

Great answer, thanks Jay.

Jay

You noted, and I quote - These driver waiting facilities include canteen, bathrooms, showers, car cleaning areas, social areas, and in some locations even small movie rooms...

Seriously?

Is there any chance Sydney Airport Corporation could maybe put up a HUGE sign, like maybe a giant billboard at the entry to this area and MAYBE suggest to drivers that they avail themselves of these fantastic facilities? Because at the moment, in my opinion they are not...

So lets move on and talk about the drivers who are now clearly fed (at the canteen), feeling cleansed of body (in the seldom used showers) and car (in the likewise seldom used car cleaning facilities) and now ready to collect a sucker, sorry fare paying passenger and OMG they find the ungrateful passenger only wants to go a short distance - which you reference - which is why they get angry if passengers take short-distance fares...

Yet ALL cab drivers can have their cab number recorded as accepting a short-distance fare so they can return and jump the queue...

This self-rightous attitude is why when I get in a cab at Domestic and need to go only as far as Dunning Ave or O'Dea Ave I make a point to tell my driver that I swapped position with the person in front of me as they were running late for a meeting at Macquarie Park. 

I agree with kimshep too. It is bloody expensive to get to the airport. $17 by train from Central. Just a ripoff. If the government wants to stimulate air travel, they better make it affordable to get to the airport.

Come down to Melbourne. It is only $19 per person each way for a 23km bus ride from the city to the airport.

That's like comparing apples and oranges

Yes, strap hanging on a bus, stuck on a freeway that has been completely pulled apart for years and probably won't be finished before the State Government is. No sign of a train in Melbourne to the airport, and as I found out Taxi's are now charging their own swindel $5 Airport fee that they add to the fare. Uber is looking good.

"Actually I'm pretty sure most of the station access fee ends up in Gov coffers, not with the airport."

Of course rob01, yes you are correct .. now. But don't forget that MAP (Macquarie Airports Ltd) originally received this benefit from the Government as the initial owner. It was then sold off - at a decent profit - to Westpac Bank. The NSW Government via CityRail now collects the station impost which goes to General Revenue and paying off the holder. Actually, the NSW Govt had the opportunity to buy back the entire project some 18 months ago, but chose not to.

Kinshep, MAP never had an interest in AirportLink. The original owners never made a profit when selling to Westpac -- AirportLink went bankrupt and Westpac bought it for a song.

The cost is what's wrong with using a train to get out of the airport. Group of four? That'll be $70 for the train trip vs $18-25 for Uber, to get from Domestic Terminal to Central. Not to mention the potential saving in distance if you live south or west of the airport (a very large percentage of Sydney).

Good luck with that!

When I lived in Sydney I always had my friends and family wait at the departure drop off and pick them up from there. No one asks any questions and it solves the drama of the tiny arrivals pick up area that is miles away from specific terminals.

So how does that apply to uber when they have a geoblock in place?

I agree with you completely. I am all for free enterprise and competition however this is a monopoly. Furthermore the model of building and extending infrastructure with public money, then privatising it to run more efficiently can ONLY work where there is legislated competition allowed. Here the Sydney Airport Corporation essentiallydoes not have to answer to anyone as they are the only game in town and neither side of politics will want to do anything about it.

So is the car park between KFC & McDowells outside of the Geoblock?  Because with all the Uber drivers waiting there, walkiing the shortish (sans luggage) distance seems like a good way to save $4

You can still catch the bus to Botany Rd from the city on the M20 for about $3. It's less than a 2km walk to the airport too. Worth it if you've got a little bit of time to spare.

I had some meetings rescheduled at the last minute in the CBD so I walked from World Square to Qantas Domestic - with backpack and roller bag! 

Was actually quite pleasant...