SF san francisco bay area car rental new venture faces legal action

BURLINGAME, Calif. (AP) — From a tiny, eco-friendly shack on a parking lot in an commercial area south associated with San francisco bay area International Airport , 3 teenagers are attempting to change the international airport rental car company. To do it, just about all they need are your cars, and strangers to drive all of them.

Their firm, FlightCar , rents out people’s cars as they are traveling, and gives all of them a share of the proceeds, free of charge airport parking along with a car wash in exchange. And the lot has had a few uncommon rentals, together with a 2001 Porsche Boxster as well as a Lotus.

“How does it make sense that there’s one parking lot at the international airport where there are a large number of cars sitting there and people are paying for them to sit there and do absolutely nothing, and there’s one more parking lot with a large number of cars owned by Hertz? inches 18-year-old FlightCar CHIEF EXECUTIVE OFFICER Rujul Zaparde said.

Zaparde and co-founders, Kevin Petrovic and Shri Ganeshram, both 19, made FlightCar, passing on elite colleges within the Northeast and joining others in what has been dubbed the “sharing economy. inches These new businesses are attempting to make it easy for people to share their home — such as automobiles or even houses — and make some money.

These companies are, however , also running up against government rules. In FlightCar’s situation, San francisco bay area city officials and those on the airport stated the company is actually undercutting rental auto companies at the airport through acting like a rental company but ignoring the regulations that govern all of them.

“We’re simply trying to enforce a consistent standard, inches said Doug Yakel, an airport spokesman.

The city has filed case against FlightCar, hoping to shut it down until it complies with the regulations, which includes conducting pick-ups and drop-offs at a exclusive area, paying 10 % of gross profits to the airport and paying a $20 per rental deal.

This kind of conflicts nationwide are making challenges for governments.

“It’s taking place so fast, practically at breakneck speeds and it is constantly challenging these assumptions cities have made up to this point, ” said Yassi Eskandari-Qajar, who studies legal issues within the sharing economy on the Sustainable Economies Legislation Center, an Oakland-based nonprofit that supports such industries.

This past year, the California Public Utilities Commission issued cease-and-desist orders and $20, 000 fines to San Francisco-based ride-sharing companies Lyft and Sidecar for operating illegally, saying the companies need allows certifying their drivers are generally properly screened, certified and insured. This lifted the orders this year in exchange for certain safeguards, such as driver records checks.

Residence-sharing companies, such as Airbnb, have also run afoul associated with existing laws. A judge ruled a month ago that Airbnb rentals violated a 2010 Nyc legislation disallowing short-term rentals.

The actual central question within the lawsuit against FlightCar is to determine exactly what kind of company it is.

FlightCar’s founders say they are not a traditional rental car firm. Yakel said FlightCar is much like Hertz or Opinion because it suits the airport’s clients and draws the majority of its revenue through passengers flying to the airport. Which means FlightCar should follow airport rules for rental companies, he said.

Because the lawsuit profits, FlightCar’s business is growing. Because the company’s operations started, the number of auto drop-offs has climbed through 600 in mid-May to at least one, 000 a month later, said Rosally Sapla, the FlightCar spokeswoman. The number of rentals went from 1, 500 to 1, four hundred in the same period.

The firm — which attracted private investors — uses about 30 in San francisco bay area and Boston even though it has not yet become lucrative, Sapla said, she expects them to be in a few years.

Yury Trushkov, thirty-one, was on his way to Russia for just a family trip when he drove his grey 2007 Hyundai Sonata on to the company’s parking lot Wednesday. Trushkov, a software engineer, can make $10 each time his vehicle is actually rented, which would beat the 200 bucks to $300 in car parking he said he has paid on past trips.

Within just five minutes of tugging into the lot, attendants had loaded his five suitcases directly into an idling Lincoln Village Car that would decrease him off on the airport. Just like cars available FlightCar, Trushkov’s Sonata could be fully insured for mechanical damage, dings or dings brought on by the tenant. It also carries $1 million in liability insurance, in case someone drives his car into a developing, for example.

It had been Trushkov’s first time using FlightCar’s service.

“So much, so good, ” he said.

The firm, which often has about 80 cars on its lot, recently expanded the services to Logan International Airport in Birkenstock boston.

Matthew Brelis, a spokesman for MassPort, the public agency that operates Logan, said companies doing business with the airport and its clients are required to have an operating agreement that would encompass financial and insurance requirements and conformity with airport and security rules.

However FlightCar has no such contract, he said.

“We would like to know who’s functioning at the airport and interacting with our customers, inches Brelis said. He said Boston airport authorities know about San Francisco’s legal action and are watching the problem.

Zaparde said the lawsuit does not faze him and FlightCar will work for the company. “It doesn’t assist us to start worrying about what the international airport thinks and what these guys think, inches he said.

The actual service keeps Walt French coming back for more. The actual 65-year-old Oakland resident is actually planning to leave his white the year 2002 Acura RSX on the company’s Burlingame lot —which he has carried out a half number of times— while he’s from town. He said any worries about damage to his auto have faded away.

“I really appreciate the savings associated with $60, ” French said. “It arrives of my pocket otherwise. inches


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BURLINGAME, Calif. (AP) — From a tiny, eco-friendly shack on a parking lot in an commercial area south associated with San francisco bay area International Airport , 3 teenagers are attempting to change the international airport rental car company. To do it, just about all they need are your cars, and strangers to drive all of them.

Their firm, FlightCar , rents out people’s cars as they are traveling, and gives all of them a share of the proceeds, free of charge airport parking along with a car wash in exchange. And the lot has had a few uncommon rentals, together with a 2001 Porsche Boxster as well as a Lotus.

“How does it make sense that there’s one parking lot at the international airport where there are a large number of cars sitting there and people are paying for them to sit there and do absolutely nothing, and there’s one more parking lot with a large number of cars owned by Hertz? inches 18-year-old FlightCar CHIEF EXECUTIVE OFFICER Rujul Zaparde said.

Zaparde and co-founders, Kevin Petrovic and Shri Ganeshram, both 19, made FlightCar, passing on elite colleges within the Northeast and joining others in what has been dubbed the “sharing economy. inches These new businesses are attempting to make it easy for people to share their home — such as automobiles or even houses — and make some money.

These companies are, however , also running up against government rules. In FlightCar’s situation, San francisco bay area city officials and those on the airport stated the company is actually undercutting rental auto companies at the airport through acting like a rental company but ignoring the regulations that govern all of them.

“We’re simply trying to enforce a consistent standard, inches said Doug Yakel, an airport spokesman.

The city has filed case against FlightCar, hoping to shut it down until it complies with the regulations, which includes conducting pick-ups and drop-offs at a exclusive area, paying 10 % of gross profits to the airport and paying a $20 per rental deal.

This kind of conflicts nationwide are making challenges for governments.

“It’s taking place so fast, practically at breakneck speeds and it is constantly challenging these assumptions cities have made up to this point, ” said Yassi Eskandari-Qajar, who studies legal issues within the sharing economy on the Sustainable Economies Legislation Center, an Oakland-based nonprofit that supports such industries.

This past year, the California Public Utilities Commission issued cease-and-desist orders and $20, 000 fines to San Francisco-based ride-sharing companies Lyft and Sidecar for operating illegally, saying the companies need allows certifying their drivers are generally properly screened, certified and insured. This lifted the orders this year in exchange for certain safeguards, such as driver records checks.

Residence-sharing companies, such as Airbnb, have also run afoul associated with existing laws. A judge ruled a month ago that Airbnb rentals violated a 2010 Nyc legislation disallowing short-term rentals.

The actual central question within the lawsuit against FlightCar is to determine exactly what kind of company it is.

FlightCar’s founders say they are not a traditional rental car firm. Yakel said FlightCar is much like Hertz or Opinion because it suits the airport’s clients and draws the majority of its revenue through passengers flying to the airport. Which means FlightCar should follow airport rules for rental companies, he said.

Because the lawsuit profits, FlightCar’s business is growing. Because the company’s operations started, the number of auto drop-offs has climbed through 600 in mid-May to at least one, 000 a month later, said Rosally Sapla, the FlightCar spokeswoman. The number of rentals went from 1, 500 to 1, four hundred in the same period.

The firm — which attracted private investors — uses about 30 in San francisco bay area and Boston even though it has not yet become lucrative, Sapla said, she expects them to be in a few years.

Yury Trushkov, thirty-one, was on his way to Russia for just a family trip when he drove his grey 2007 Hyundai Sonata on to the company’s parking lot Wednesday. Trushkov, a software engineer, can make $10 each time his vehicle is actually rented, which would beat the 200 bucks to $300 in car parking he said he has paid on past trips.

Within just five minutes of tugging into the lot, attendants had loaded his five suitcases directly into an idling Lincoln Village Car that would decrease him off on the airport. Just like cars available FlightCar, Trushkov’s Sonata could be fully insured for mechanical damage, dings or dings brought on by the tenant. It also carries $1 million in liability insurance, in case someone drives his car into a developing, for example.

It had been Trushkov’s first time using FlightCar’s service.

“So much, so good, ” he said.

The firm, which often has about 80 cars on its lot, recently expanded the services to Logan International Airport in Birkenstock boston.

Matthew Brelis, a spokesman for MassPort, the public agency that operates Logan, said companies doing business with the airport and its clients are required to have an operating agreement that would encompass financial and insurance requirements and conformity with airport and security rules.

However FlightCar has no such contract, he said.

“We would like to know who’s functioning at the airport and interacting with our customers, inches Brelis said. He said Boston airport authorities know about San Francisco’s legal action and are watching the problem.

Zaparde said the lawsuit does not faze him and FlightCar will work for the company. “It doesn’t assist us to start worrying about what the international airport thinks and what these guys think, inches he said.

The actual service keeps Walt French coming back for more. The actual 65-year-old Oakland resident is actually planning to leave his white the year 2002 Acura RSX on the company’s Burlingame lot —which he has carried out a half number of times— while he’s from town. He said any worries about damage to his auto have faded away.

“I really appreciate the savings associated with $60, ” French said. “It arrives of my pocket otherwise. inches

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