McAllen approves $3 Uber and Lyft fee at airport

McAllen city commissioners approved a contract Monday requiring Uber and Lyft to pay a $3 fee for each passenger pickup at McAllen International Airport, adopting a phased-in approach after debate over whether the charge is necessary.

“It would be no different than a fee charge for somebody who parks their car there, no different than somebody who takes a taxi from there, who rents a car from there,” McAllen City Manager Isaac Tawil said. “All of those passengers who buy a ticket and pass through the airport…are paying use fees.”

Commissioner Joaquin Zamora pushed back on the proposal, arguing that the airport has not demonstrated congestion issues or outlined improvements tied directly to the new charge.

“To me, I don’t think this is a fee that’s necessary or certainly would be one that’s requisite given passenger volume but it’s coming,” Zamora said.

Under the approved agreement, the fee will apply to each pickup conducted by rideshare drivers at the airport. City officials said there are about 4,000 Uber pickups at the airport on average every month. They did not disclose figures for other rideshare companies. 

The fee will be phased in over six months, increasing by $1 every 90 days until reaching the full $3 per-pickup rate.

City officials estimate the charge could generate up to $4 million for the airport, with revenue directed toward paying down debt tied to airport expansion projects. 

Officials, however, did not provide a breakdown explaining how the $4 million revenue projection was calculated.