LTFRB warns Uber, Grab over unreasonable price surge
MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) warned transport network companies Uber and Grab they face suspension or cancellation of their accreditation should the "unreasonable surges" of rates persist this holiday season.
In a press release issued on Saturday, December 24, the LTFRB said it received complaints about price surges ranging from P2,000 to P28,000 this holiday season.
"LTFRB strongly warns Uber and Grab not to take advantage of the holiday season as a reason to unreasonably surge their respective rates," the land transport regulator said in the release.
"LTFRB reserves its right to suspend or cancel the accreditation of Uber and Grab if these unreasonable surges will persist," it added.
The transportation department's Department Order No. 2015-11 allows transport network vehicle services (TNVS) "to determine their fares in line with efforts to encourage innovation in public transportation in order to increase mobility on major thoroughfares, boost travel time, improve the quality, sustainability and reliability of public transport services, and respond to the needs of the modern commuter."
The LTFRB said it has not been consulted about Uber's "upfront fares based on predictions," which is a calculation based on predicted traffic conditions between your pick-up and drop-off point.
Just before the holiday rush, Uber removed the surge notification – which pops up whenever fares have gone up twice or more – and replaced it with an upfront fare feature similar to GrabCar's.
Uber Philippines general manager Lawrence Cua clarified earlier this week that "fare shock" or discrepancies may arise because of several factors: the route changed, the trip added multiple stops, or the traffic worsened during the trip. (READ: Only 1 in 20 trips affected by fare shock – Uber PH)
Grab also told the Manila Bulletin that fare movements depend on "passenger demand, app usage, road conditions, and traffic."
But several commuters have complained about unreasonable price surging since the holiday season started in early December.
The LTFRB has asked the commuting public to report any violation by calling its 24/7 Hotline 1342 or sending pictures or screenshots of said incidents to email@example.com. – Rappler.com