LTFRB threatens to revoke permits of overcharging ride-hailing firms
NOT ENOUGH UNITS? The Land Transportation Franchising and Regulatory Board received complaints from ride-hailing app users regarding the lack of transport network vehicle service units and fare hikes. File photo by Ben Nabong/Rappler
MANILA, Philippines – Amid mounting complaints of fare hikes during the holiday season, the Land Transportation Franchising and Regulatory Board (LTFRB) summoned transport network companies (TNCs) and warned that their permits may be revoked if riders will continue to be charged with excessive fares.
On Wednesday, December 18, the LTFRB said there are increasing complaints from ride-hailing application users regarding the lack of transport network vehicle service (TNVS) units and continuous overcharging.
According to commuters, ride-hailing firms are charging higher fares particularly in December, when the Christmas rush is expected to cause an influx of vehicles along major roads.
LTFRB Chairman Martin Delgra will meet with the accredited TNCs within the week to discuss and resolve the complaints.
"To the TNCs, do not abuse the clamor for TNVS this holiday season, hindi kami magdadalawang isip na tanggalan kayo ng permit kung kayo ay lalabag sa mga mandato na nakasaad sa inyong kontrata," Delgra said in a statement.
(To the TNCs, do not abuse the clamor for TNVS this holiday season, we will not hesitate to revoke your permit if you violate your contract.)
The LTFRB gave assurances that it was continuously reviewing and monitoring the compliance of TNCs with the set fare structure guidelines to spot any violations.
According to Delgra, 60,000 permits were given out to TNVS to accommodate the demand of the riding public.
The following TNCs are accredited by the LTFRB:
- Grab
- Hype
- Hirna
- Owto
- MiCab
- Go Lag
- ePickMeUp
- SnappyCab
- Ryd
In the same week, Grab was fined P16.15 million by the Philippine Competition Commission (PCC) for breaching its commitments on pricing and driver cancellation rates. While Grab's pricing commitments to the PCC is different from the LTFRB fare matrix, the PCC also noted that there remains to be insufficient competition in the ride-hailing market.
Lawmakers have also called out Grab in particular for its high surge during the Christmas season.
Senator Win Gatchalian earlier called on the LTFRB not just to make sure surge pricing rules were being followed but to also re-assess Grab's fare matrix.
Puwersa ng Bayaning Atleta representative Jericho Nograles also urged Grab to lower its commission charge for the sake of the driver-partners, and to give discounts to loyal riders and drivers. – Rappler.com
