City of San Francisco Sues FlightCar Over Airport Fees
The City of San Francisco has filed a lawsuit against car sharing startup FlightCar for refusing to pay SFO airport fees.
Accused of not complying with San Francisco International Airport’s (SFO) regulations and refusing to pay fees, FlightCar is being sued by the city of San Francisco. On May 31, San Francisco City Attorney Dennis Herrera filed a lawsuit against FlightCar, a car sharing startup that allows travelers to rent out their vehicles in exchange for free parking, a car wash, shuttle service and the opportunity to earn up to $10 per day.
According to the lawsuit, FlightCar has flouted SFO’s permitting and fee requirements for rental car companies. The City contends that FlightCar has an unfair advantage over other rental agencies that comply with the regulations and must pay the appropriate fees – 10% of gross profits and $20 per rental.
Rujul Zaparde, co-founder of FlightCar, said his company, which launched in February, refuses to pay the fees on the assertion that it isn’t a traditional airport car rental agency; it’s a peer-to-peer car sharing company.
“The airport has refused to consider us as anything other than an off-site rental agency,” said Zaparde. “And if that’s the case, then it will be decided in court.”
Operating from an off-airport site, FlightCar customers drop their cars at a lot in Burlingame, Calif., and a limo service takes them to and from the airport. And according to Zaparde, the limos are licensed with the airport and pay the appropriate airport fees for each round trip.
Although FlightCar operates from an off-airport location, it is still considered a car rental company that caters to customers of the airport, according to Doug Yakel, public information officer for SFO.
“This company is competing for the same customer base yet without incurring the costs of their competitors,” said Yakel. “We view that as an unfair business practice.”
And with regulatory agencies like the California Public Utilities Commission still trying to figure out how to regulate shared ride businesses, the airport will continue to enforce its existing rules and fees for all rental companies, said Yakel.
FlightCar has until July 1 to respond to the lawsuit. For an Auto Focus blog on the topic, click here.
By Amy Winter
More Rental Operations

Surprice Mobility Opens Corporate Rental Station at Milan Airport
The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.
Read More →
Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
Green Motion Expands Into Japan With Master Franchise Agreement
Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.
Read More →
ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future
The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.
Read More →
World Cup Travel Data Shows Longer Car Rentals and More One-Ways
A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.
Read More →
A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker
Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.
Read More →Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Stellantis Recalls 1.3 Million Jeep Vehicles Worldwide Over Fire Risk
Stellantis is recalling more than 1.3 million Jeep Wrangler and Gladiator models worldwide over a fire risk linked to power steering pump wiring.
Read More →
