WATCH | LTFRB imposes cap on Uber, Grab ‘surge rates’
The online news portal of TV5
MANILA, Philippines -- The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered Uber and Grab to impose a cap on their surge rates amid complaints from commuters that they have imposed exorbitant fare prices.
The LTFRB stated that the "surge multiplier" for transport network companies (TNCs) shall be twice the rates for time covered and distance travelled excluding the base fare.
Uber had agreed to lower its multiplier max to 2.9 from 5.0 while Grab will go down to 1.6 from 2.5.
They were given a period of 10 days to file their respective position papers on issues such as liability and reasonable determination of rates.
LTFRB has earlier warned Uber and Grab that it will suspend or cancel their accreditation if they impose unreasonable price surges.
The agency said it had received numerous complaints from passengers that the surge in fares has ranged from P2,000 up to P28,000.
Grab said it has placed a cap on its rates from December 24, 2016 until January 30, 2017.
For its part, Uber has implemented a limit on their price surge until January 15, 2017.
The TNCs contended that the price surges were only dictated by the huge demand for their services during this holiday season.
They said that the price surge could have been averted had the LTFRB not suspended in July the applications for new transport network vehicle service.
The TNCs advised their passengers to double check their pick-up and drop-off points before confirming their bookings.
If there are discrepancies in computation, the TNCs said they are willing to give
refunds as long as the computation is proven wrong.
WATCH THE NEWS5 VIDEO REPORT BY RENZ ONGKIKO BELOW: