Grab implements price cap after LTFRB warning

Grab over the weekend said it has voluntarily placed a cap on its prices, following the Land Transportation Franchising and Regulatory Board's warning that ride-hailing applications must stop the unreasonable price surges this holiday season.

"To ensure that the riding public will get the best service and rates during this season, Grab is voluntarily placing a cap, in compliance with the LTFRB, on our rates starting today, Dec. 24 to Jan. 30,2017," it said in a statement uploaded on the LTFRB Facebook page. It did not elaborate.

"For our passengers, may we request that you double check your pickup and drop-off points before confirming your booking. However, we are ready to refund rides, upon verification, should they be charged for any incorrect rate caused by a system error," it added.

This comes after the LTFRB said it has received complaints that customers have experiences fare surges ranging from P2,000 to 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.

Upfront fares

The LTFRB also claimed it was not consulted about Uber's "upfront fares based on predictions" which Uber adopted in October, effectively removing the surge notifications which alerts users that fare prices have increased.

In a statement released Saturday, Uber said its upfront fares were "similar to how hotels charge their guests."

"At the start of the trip, Uber may place a temporary authorization hold for the upfront fare of the trip on your payment method. This will show up as a 'pending' charge on your account," it said.

"When the trip completes, this hold is converted to a charge for the final trip fare. If the trip has been cancelled or the total fare is different from your account, but depending on your bank policy this might take up to a few days," it added.

Moving forward, the LTFRB urged the public to report any violations through its 24/7 hotline at 1342 or through mobile numbers 0917-550-1342 or 0998-550-1342.

They may also email photos or screenshots of the unreasonable price surges to complaint.ltfrb.gov.ph@gmail.com.

"LTFRB reserves its right to suspend/ cancel the accreditation of Uber and Grab if these unreasonable surges will persist," it said. — Jon Viktor D. Cabuenas/BM, GMA News