Uber, Grab agree to a price cap after LTFRB warning

The Land Transport Franchising and Regulatory Board (LTFRB) ordered Uber and Grab to implement a limit to its surge pricing.

In response to a 48-hour ultimatum issued by the LTFRB, ride-sharing services Uber and Grab complied with a government directive to address complaints over “price surges” this holiday season.

 Image grabbed from hercampus.com

“The maximum allowable price surge on the fare shall be twice the rates for time covered and distance traveled excluding the base fare,” the order read.

It also directed Grab Philippines to “lower its fare per kilometer from ₱12.00 – ₱16.00 to ₱10.00 – ₱14.00, depending on the type of vehicle used.”

LTFRB Chairman Martin Delgra III told The Source on Tuesday that he talked to Grab and Uber separately in at least four occasions over the past five months. “They have agreed to that policy that they are willing to submit to a level of regulation.”

Grab announced that it will already cap its surge rate to twice the regular rate from Dec. 24 to Jan. 30 next year “to ensure that the riding public will get the best service and rates during this season.”

Grab Philippines country head Brian Cu also told CNN Philippines’ The Source prior to the hearing that it would also lower the fare per kilometer to reflect the existing traffic situation.

Also read: Business Talk with Grab’s Marketing Head Khriz Lim

Meanwhile, there’s no direct response from Uber Philippines but it already agreed to a price cap that will be effective until January next year to allow passengers to avail themselves of “more affordable” rides.

Uber also urges the public to use the Uber app’s “Help” feature should they have any concerns regarding their trip.

The transportation network companies were also instructed to file position papers on the liability and accountability of their companies as well as reasonable determination of fees within ten days.

Source: cnnphilippines.com, newsforthegigeconomy.com