The Palm Springs City Council on Wednesday, Nov. 12, will consider raising the taxicab ground transportation fee at Palm Springs International Airport from $3.25 to $4.00 per trip, with the change slated to take effect Dec. 1 if approved.
The move would align taxi fees with what Uber and Lyft already pay. The council voted in April to lift Transportation Network Company (TNC) charges from $3.00 to $4.00 per airport pick-up and drop-off, a change that took effect May 1 under a new operating agreement.
The Palm Springs Airport Commission unanimously recommended the taxi fee increase on Oct. 15, backing the staff proposal to bring taxis to parity with TNCs and to keep pace with rates at comparable Southern California airports.
How we got here
Taxi access charges at PSP have changed only a handful of times in two decades. Before Oct. 6, 2006, cabs paid $1.00 to access the airport; afterward, fees rose to $2.50 for a standard pick-up and $3.00 for a pre-arranged appointment and remained at those levels through June 30, 2023.
On July 1, 2023, the airport converted its “Ground Access” charge to a Taxicab Ground Transportation Fee, set at $3.25 per pick-up or pre-arranged trip. Taxi companies also pay a $300 annual company fee, a $120 annual vehicle fee, and a $35 transponder fee per vehicle.
Unlike ride-hail operators, which are charged for both pick-ups and drop-offs based on geofencing, taxis are charged only for standard pick-ups and pre-arranged appointments via their transponders.
What the numbers show
TNCs have become the dominant mode of transportation to and from PSP. Airport data show that TNC trips accounted for 55% of ground-transport activity in both 2023 and 2024, while taxi rides accounted for 8% and 10% in those years, respectively.
That shift is reflected in fee collections: in FY 2025, the airport collected $1.37 million from TNCs and $233,711 from taxis, for a total of $1.61 million in ground-transport fees. The taxi landscape has also been volatile: Palm Springs Taxi began service in July 2024, while Yellow Cab of the Desert ceased operations in September this year.
Looking ahead, staff estimate the taxi fee increase would generate roughly $240,000 in FY 2026—about 3% less than FY 2025 due to Yellow Cab’s exit. Without the increase, taxi-related revenue is projected to fall to about $186,000, a 23% drop.
How Palm Springs compares
The proposed $4.00 taxi fee would match Ontario International’s $4.00 rate for standard and pre-arranged pick-ups. Long Beach charges $3.00 for taxis and TNCs alike, while Fresno relies on an annual permit model rather than per-trip fees.
Why the airport says it matters
Airport officials frame the increase as cost recovery and parity: aligning taxi fees with TNCs, tracking peer airports, and supporting operations, customer experience, and capital projects funded by non-aeronautical revenues. The resolution attached to the staff report would formalize the $4.00 charge effective Dec. 1.
The broader taxi challenge
Taxi operators in Palm Springs face the same headwinds seen nationwide: sustained competition from ride-hail platforms, uneven demand patterns tied to flight schedules and tourism seasonality, and higher per-vehicle fixed costs for insurance, maintenance, and compliance. Locally, the data underscore that competition – TNCs now account for a majority of trips – and market churn, with one legacy provider shutting down even as a new entrant launched last year.
What’s next
The fee change appears on the council’s Nov. 12 consent calendar; if adopted, the new rate takes effect Dec. 1. Taxis will continue to be assessed only on pick-ups and pre-arranged trips, while TNCs will remain charged per pick-up and drop-off.
Note: While SunLine Transit Agency licenses taxicabs in the Coachella Valley, the city retains authority to levy airport fees on taxi operations.
