Massport Votes To Raise Fees on Ubers, Lyfts to Logan Airport — But Limits Planned Fee Hikes

After Uber and Lyft criticized the Massachusetts Port Authority’s proposed fees on rides to Boston Logan International Airport, the board approved a rate hike from $3.25 to $5.50 per trip for ride-hailing providers.

The $2.25 hike was initially the first of Massport’s two proposed hikes, adding up to $15 for a round trip to the airport. But after fierce criticism from rideshare companies, the second hike from $5.50 to $7.50 was removed from the March 20 proposal.

The hike was approved unanimously by the Massport board, and is set to take effect this summer. The board also voted to impose a $1.50 fee on shared ride-hailing trips to the airport.

Beyond ride-hailing services, traditional transportation like limos and taxis will also be affected by a price hike. Passengers taking limos or taxis to or from Logan will see increases from $3.25 to $7.50 and from $2.25 to $2.50, respectively, by 2028.

The increased fees on ride-hailing services is intended to both reduce congestion and fund infrastructure improvements at Logan as Massport undertakes projects worth $1.5 billion to expand ground transportation, including the construction of a new garage in Terminal E.

The fees are forecasted to raise $1.1 billion in revenue towards the airport’s 2025-2029 capital plan, according to Massport spokesperson Jennifer B. Mehigan. The pause on the second fee hike for ride-hailing services resulted in a $400 million adjustment to the five-year capital plan.

During the board meeting, director of aviation business and finance at Massport Daniel Gallagher presented data estimating an increase of 13,000 vehicles a day to the airport over the next 10 to 15 years, according to the Boston Globe.

“The airport will likely average about 9.5 million ride-app trips in 2025, equating to about 14 million vehicles,” Gallagher said.

Ride-hailing services are one of the primary ways passengers get to the airport, representing 30 percent of passengers in 2024. Drop-off fees generated $15.6 million in revenue for the fiscal year 2024, or around 8.6 percent of Massport’s concession revenue.

The vote reflects a compromise reached between Massport, Uber, and Lyft on the fare hikes, which had raised concerns about negatively impacting riders and hurting drivers’ incomes.

The initial fee increases drew criticism from those who argued that it would hit Uber and Lyft drivers the hardest, a worry that has persisted even with the reduced hikes. At Thursday’s meeting, ride-hailing drivers voiced concerns that a fee hike would cut their earnings at a time when living expenses continue to rise and take-home pay declines.

Uber and Lyft did not respond to requests for comment on this criticism.

Massport CEO Richard A. Davey said in a statement that the new agreement improves “the rider experience, establishes new, cheaper ways to get to Boston Logan and helps mitigate traffic around the airport and our surrounding neighborhoods.”

At Thursday’s meeting, WBUR reported that Davey nicknamed the updated proposal “the Goldilocks” version between Massport and ride-hailing companies’ demands.

“I think some folks thought we were maybe too hot, others too cold,” Davey said.

The agreements grant Uber and Lyft rides increased curbside access at Logan, with both ride-hailing companies expanding their shared ride services to increase the number of passengers in each vehicle.

Gallagher emphasized at the meeting that despite the new policy, not all ride-hailing trips will be granted curbside access.

“We’re not changing our policies on allowing all Ubers and Lyfts at the curb,” Gallagher said.

Both companies will also be collaborating with Massport individually to develop shuttle services to Logan airport to reduce single occupancy trips.

“While we still have concerns about increasing fees on riders, this is a step in the right direction,” Brendan Joyce, public policy manager at Lyft, wrote in a statement.

Uber spokesperson Josh Gold expressed satisfaction with the “compromise” struck with Massport.

“We will continue to work with Massport to get travelers as close to the curb as possible and will always advocate for the best service for riders and the best platform for drivers,” Gold wrote.

—Staff writer Stephanie Dragoi can be reached at stephanie.dragoi@thecrimson.com.

—Staff writer Thamini Vijeyasingam can be reached at thamini.vijeyasingam@thecrimson.com. Follow her on X @vijeyasingam.