Logout

Question of the Day - 04 November 2019

Q:

Is it possible that all the taxes and fees we have to pay to rent a car have driven more people to Uber/Lyft, and now Vegas and Clark County are receiving less revenue than before they started gouging us?

A:

We don't have any numbers on rental cars alone; deciphering the Clark County financials is a bit above our pay grade. But empirically, we can say that there's no doubt about it: Uber and Lyft have cut significantly into revenues from not only rental cars, but taxicabs, the Monorail, even Strip buses. This is true everywhere and the phenomenon is known as the "Uber effect."

We can give one example of it with hard numbers.

The Southern Nevada Regional Transportation Commission reported recently that revenue from Strip bus ridership has fallen by nearly $7 million in the past five years; that's 30% -- a major decline, especially given near-record highs in visitor volume. 

To counter the Uber effect, the RTC launched a pilot ride-hailing program in May, an app-based service between the airport and the resort corridor in 11-seat vans. 

In the first 100 days of operations, the only numbers that we've seen, the vans transported 18,000 riders on 5,600 trips, generating $74,000 in revenue, an average of $4.11 per rider, which is extremely competitive with Uber/Lyft. 

 

 

Have all the rental car fees driven more people to Uber/Lyft, so local governments are collecting less revenue?
No part of this answer may be reproduced or utilized in any form or by any means, electronic or mechanical, without the written permission of the publisher.

Have a question that hasn't been answered? Email us with your suggestion.

Missed a Question of the Day?
OR
Have a Question?
Tomorrow's Question
Has Clark County ever considered legalizing prostitution?

Comments

Log In to rate or comment.
  • thebeachbum Nov-04-2019
    No More Rentals for Me
    A few trips ago, I looked at renting a car at the airport.  Each company wanted me to pay early to save money and would charge a $50 fee for a cancellation.  Okay, I then tried not paying early and they still wanted to charge a fee for cancellation.  Lyft, Uber, metro, and just walking is a better deal.

  • Ray Nov-04-2019
    Parking?
    I think that when you add casino parking fees to the cost of having a rental, there are even more reasons to using ride-share services.

  • Dave Nov-04-2019
    Parking 
    Ray is right. It was the casino parking fees that became the tipping point for me and I assume lots of potential car renters. 

  • David Nov-04-2019
    Stop gouging visitors
    The taxes on rental cars are unbelievable. You think Las Vegas is bad? Go to Phoenix, or Reno. Let the people who directly use these services pay the taxes (e.g., the rental car tax that pays for spring training baseball facilities in Maricopa County should be paid for by the people who come to the games)

  • jay Nov-04-2019
    Long haul
    My mother was a gambler and from the age of 3 I remember being in Vegas at least every 4 months. I am over 50 now and mom is long gone but I can say that I know the path from the Airport to the strip or downtown pretty well. Still it has not stopped those $%^&* Cab drivers from trying to long haul me over 80% of the time then they moan/bitch and threaten when you tell them that they can take their tip money out of the over charged fare. I am sure the Vegas Taxi Commission has me on speed dial as I have had to complaints more often than not.
    
    I love the concept of Uber and Lyft apps that ask where I am going and then give me a price. If the Uber driver wants to give me a tour of the city then so be it, but the price is the price and I tip the drivers well. 
    
    At times I used to be able to get a car for 9.99/day from priceline as such it was cheaper than either the shuttle or cab ... if only to park the car - never use it - except to get back to the airport. Parking $$ has ended that.

  • Kevin Lewis Nov-04-2019
    Uber and Lyft are blowing it
    Those outfits offer something far superior to hailing a cab, and for people who aren't driving all over the place, superior to renting a car, but they're making a huge mistake. That mistake is the notorious "surge pricing," which makes it twice or three times as expensive to ride during peak periods. I've heard dozens of people complain about it taking $12 to get to the Strip at 2 in the afternoon and $36 to make the same return trip at 7.
    
    That, I think, offends people's sense of fairness. There's an intrinsic component to every service you buy, regardless of time period. That cost and price should be fixed and constant. Surge pricing is like car washes tripling their prices during a dust storm, or for that matter, restaurants charging double or triple from 6-8 pm. Or casinos raising the table limits to $25 when...oh, wait.
    
    I wonder when this town will dial back the gouge-the-tourists memory. Surely some must be comprehending that Vegas regards them as mooing cash cows.

  • Anthony de Jesus Nov-04-2019
    Uber doesn't make money
    Venture capital subsidizes cheaper rides in what is, arguably, a Ponzi scheme.  It has an unsustainable business model with a high probability of going broke within a decade of it can no longer find suckers to invest.
    
    We will see if Uber will be affected by the flat rate taxi fares from the airport that are coming next year.

  • gaattc2001 Nov-04-2019
    Last time I rented a car at MacCarran Airport...
    while standing in line, I had plenty of time to study the sign detailing the additional fees. I was so impressed that I took a cell pic of it:
    "Rental Rates do not include:
    10% Airport Fee
    7.75% Sales Tax
    6% Recovery Fee
    2% PCA Fee
    $3 per day CFC Fee."
    The last one is not for Chlorofluorocarbons in the air conditioner, as I first thought; but rather a "Consumer Facility Fee" imposed by the airport in addition to the Concession Recovery Fee--at MacCarran, probably for the privilege of using the (then) new integrated rental car facility.
    Since I was a math major in an earlier incarnation, I can state with confidence that this adds up to 29.75% plus $3 per day; and, needless to say, none of this had been mentioned when I made the reservation. 
    It was already booked, so I gritted my teeth and took it. But that really was the LAST time I rented a car at MacCarran Airport, and that was many years ago.
    https://simplepleasurestravel.com/what-are-those-car-rental-fees/

  • gaattc2001 Nov-04-2019
    Correction to above:
    That 6% is a "DMV fee" and there's a 4% "Recovery fee." Somehow the original post got garbled on entering. Now it adds up to 29.75%.
    Sorry....

  • Jon Anderson Nov-04-2019
    another uber-lyft plus
    not long ago the lva had a topic re: car rentals and the liabilities involved with valet parking. seems like there's just too many catches to too many things involving rentals. rental loopholes abound and now toss in credit card usage rules and regs with their own set of loopholes and bingo. now pile on the parking fees and add the stress of vegas traffic, self parking and bango it's pretty much a no brainer. hello uber and lyft, surge pricing be damned. now the next concern is that your uber or lyft driver hasn't gone bongo and you're the unlucky one to climb into their backseat. 
    

  • Gregory Nov-06-2019
    Rental Cars
    So...If ride share is cutting back on the number of rental cars in Las Vegas, why are the fees so much more this year? Last November I rented a car from Dollar at $185 (all in). This month it is $285. Same car, same time, same number of days.