Peer-to-peer car-sharing market Turo has filed a lawsuit towards the town of Los Angeles Airport in a preemptive strike aimed toward defending the power of its customers to hire out their private automobiles at Los Angeles Worldwide Airport.
Turo filed the lawsuit Thursday within the U.S. Central District Court docket of California in Los Angeles. Town isn’t in a position to touch upon ongoing litigation, Alex Comisar, press secretary for LA Mayor Eric Garcetti mentioned.
Turo contends in its lawsuit that LAX has misclassified its peer-to-peer car-sharing platform as a rental automotive firm. Turo argues that California’s car-sharing regulation is evident and notes that it doesn’t personal or function a fleet of automobiles or use the airport’s amenities that conventional rental automotive corporations do.
“Due to this misclassification, the airport expects Turo to obtain a rental car company permit and expects our community to pay anti-competitive fees whenever they choose to exchange cars at or near LAX,” Turo Chief Authorized Officer Michelle Fang informed TechCrunch. “We’ve seen firsthand how rental car giants Enterprise Rent-a-Car have prodded airports across the country, including LAX, to attack our community, including our users’ rights to choose transportation options other than rental cars and to share their own cars to supplement their income.”
Fang mentioned LAX has repeatedly refused to even come to the desk regardless of efforts to barter.
Turo says within the lawsuit that it has reached out to LAX officers in an effort to develop an acceptable price construction. The corporate is open to paying a price that’s in step with how ride-hailing corporations are charged.
“The fees need to be proportionate for the way that the ground transportation is being used,” Fang mentioned, including that rental automotive corporations want parking heaps and shuttles and different infrastructure at airports. “The use to LAX is much more comparable to TNCs and limos and taxis than it is to rental cars.”
The corporate determined to take motion after it seen e mail messages between the automotive rental firm Enterprise Holdings and metropolis officers that mentioned an impending lawsuit towards Turo. Enterprise has but to reply to a request for touch upon the lawsuit.
The lawsuit towards Los Angeles marks additional escalation of a battle between Turo and established automotive rental corporations that purpose to guard their domains.
Earlier this yr, San Francisco sued Turo for allegedly ignoring price necessities and different guidelines at San Francisco Worldwide Airport. Town’s lawsuit argued that Turo’s customers have added to airport site visitors congestion and that its operation on the airport with out paying charges offers it an unfair benefit towards opponents.
Turo countersued San Francisco, saying the town was making an attempt to categorise it as a conventional rental automotive firm.
Turo closed a $104 million Collection D spherical in April. The corporate has raised $205 million to this point.