Car-Sharing App Challenges LAX Fees

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Los Angeles World Airports is facing down a legal challenge from San Francisco-based car sharing app Turo Inc. over how the airport permits car-sharing services.

Turo filed a lawsuit July 12 in federal district court in Los Angeles claiming its business was being miscategorized by airport regulators.

Turo bills itself as a “car sharing marketplace” that allows car owners to download their app, list their cars, and rent them out to other app users in need of wheels. Users meet up at a designated location so the person renting the car can get keys. The app allows owners to check on their car’s location. Turo does not operate or own a fleet of cars.

Turo’s lawsuit claims that it has been forced to pay the same fees as rental car companies – including a charge of $7.50 per day and a 10 percent fee per each booking – despite the company’s hands-off business model.

Neither Turo nor its customers have yet paid these charges to LAX.

Airport officials said as of July 17 that they didn’t have a copy of the lawsuit. Charles Pannunzio, spokesman for LAWA, said in an email that Turo has operated at LAX without a permit for the past two years. Pannunzio added that Turo cars increase traffic at LAX.

Turo’s Chief Legal Counsel Michelle Fang said that the company tried negotiate a permit for nearly a year before the lawsuit was filed. She said there was no concrete evidence that Turo users add to airport congestion.

“California was on the cutting edge by passing a peer-to-peer personal vehicle sharing bill in 2010, which says personal vehicle sharing is a totally different industry than rental cars, has different requirements, and that these are different industries,” Fang said.

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