Sidecar beat its competitors and became the first on-demand ride-sharing service approved to legally operate at San Francisco International Airport.
Sidecar, the popular ride-sharing service, announced a new partnership deal with San Francisco International Airport (SFO), which allows it to legally run its business at the airport. The new deal is the first of its kind and Sidecar is the first Transportation Network Company (TNC) to receive a legal permit in the state of California. However, the official permit does not allow Sidecar to promote its Shared Rides feature, which is deemed illegal at the airport and most parts of the country.
Uber and Lyft are fighting to gain approval from the authorities to legally operate in the country and are pushing regulators to review their policies against ride-sharing services. Sidecar along with Wingz, Uber and Lyft received a strict warning from the state regulators in June that the continued operations would result in the closure of the companies.
The new partnership deal with SFO is a big win for Sidecar, which is placed third in the on-demand car services space in San Francisco compared behind Uber (61 percent) and Lyft (30 percent). According to a UC Berkeley study, only 7 percent San Franciscans used Sidecar services, SF Gate reports.
"This permit reflects our commitment to new business models at SFO, and ensures safe, consistent service for our customers," Airport Director John L. Martin said in a statement published on Sidecar's official blog, Tuesday. "I applaud Sidecar for taking the lead in their industry with the first authorized service at SFO. Their proactive approach sets an example for other transportation network companies to follow."
Lack of Shared Rides feature for Sidecar could affect the popularity of the service, but it is a good start for a less popular company to gain traction in the Uber-dominated arena. In fact, Sidecar is the only company besides Lyft in the U.S. to have an airport deal. Lyft has a similar partnership deal with Nashville International Airport.
According to the blog, Lyft will resume operations at SFO within 30 days. Doug Yakel, a spokesperson for the company, told SF Gate that Sidecar will pay the airport $3.85 for each trip and a permit activation and monthly fee. The deal is a part of a pilot program by SFO to test the impact on traffic congestion. Sidecar's pickup and drop point will be at the airport's upper level and a new staging area will be set up next to the cell-phone waiting area where drivers will get their fares to avoid congestion, Yakel added.
