FlightCar and airports argue over what’s innovation and what’s just cheating
Skift Take
FlightCar likens itself to other sharing economy companies by arguing that there are no regulations for its new business model. But it really isn't complicated at all: It is a business, and there are rules about businesses operating at airports.
Innovative startups will always run smack into dissension from existing companies and old regulations. But there's a difference between creating a new market and cheating the system, and FlightCar is walking a thin line.
On June 7, the San Francisco city attorney's office filed a lawsuit against the airport car rental and parking service on behalf of San Francisco Airport for continued violation of the airports' cease and desist letters.
The startup launched at SFO in March 2013, but quickly moved to a lot four miles away from the airport after receiving a cease and desist order for operating at the airport without a permit.
The startup continued to resist airport regulations, which require off-airport car rental agencies to pay the airport 10 percent of gross profits and a $20 transportation fee for each rental car transaction; fees currently paid by SFO's more traditional off-airport car rental companies including Advantage, Airport Van Rental, and Pay Less.
FlightCar's stance
FlightCar argues it does not need a Commercial Ground Transportation Permit given its unique business model, which it describes as a "peer-to-peer and business-driven sharing-economy company."
FlightCar's business model allows travelers to drop off cars at its lot and then receive either
