Uber limits fare surge until January 15

Following the directive of the Land Transportation Franchising and Regulatory Board (LTFRB) that ride-hailing applications stop the unreasonable surges this Christmas season, Uber Philippines said it has implemented a limit on fare surges for the meantime.

"In response to the LTFRB's directive, Uber has implemented a limit on surge to make rides more affordable during the busy holiday season. This will be effective until January 15, 2017," Yves Gonzales, head of public policy at Uber Philippines, said in a tweet.

Uber PH’s additional response to the directives from @LTFRB posted on social media this weekend. @DOTr_PH pic.twitter.com/5CgQbnSzBf

— Yves Gonzalez (@doblezeta) December 25, 2016

Grab Philippines earlier placed a cap on its prices "to ensure that the riding public will get the best service and rates during this season." 

The statements of both companies came after the LTFRB said it has received complaints that customers have experienced fare surges ranging from P2,000 to as high as P28,000.

"LTFRB strongly warns Uber and Grab not to take advantage of the holiday season as a reason to unreasonably surge their respective rates," it said.

TNVS suspension

In a separate statement, Uber also claimed that the recent increase in its fares came as demand ballooned but supply has remained the same as the LTFRB has suspended the processing of Transport Network Vehicle Service (TNVS) applications.

"We have seen increasing demand for Uber rides this holiday season, yet vehicle availability remained stagnant. We are optimistic that the LTFRB will soon lift the suspension on new TNVS applications, allowing more people to enjoy safe, reliable and affordable rides in the Philippines," it said.

Under Memorandum Circular (MC) No. 2016-008 issued in July, the LTFRB directed its technical division not to accept any applications as it said it will review existing policies before granting new applications. 

"Since the suspension of TNVS applications in July, we have been in frequent dialogues with the LTFRB to find workable solutions to meet the increasing demand for ridesharing options and avoid price increases brought about by disproportionate supply and demand, longer wait times for riders, or having no available cars on the road," Uber said. —KG, GMA News