LTFRB puts cap on Grab, Uber’s surge prices

The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday ordered ride-hailing applications Grab and Uber to immediately bring down their surge multiplier to a maximum of twice the fare, excluding the base fare.

"(We have ordered them) to set a cap on the surge at times two but to exclude the base fare," LTFRB Chair Martin Delgra III told reporters on the sidelines of a hearing Tuesday.

GrabTaxi currently charges a booking fee of P50.00 on top of the fare on the taxi's meter.

Meanwhile, the fare table on the company's website indicates that GrabCar sedans and compact vehicles charge a base fare of P30.00 and P12.00 per kilometer.

GrabCar+ or "executive" sedans and Asian utility vehicles (AUVs) charge a base fare of P70.00 and P15.00 per kilometer.

"To make sure our GrabPeers can accommodate all GrabCar riders, we implement Rush Hour Rates temporarily. Our rates may go up at certain times of the day," it said.

On the other hand, Uber X implements a base fare of P40.00, plus P2.00 per minute and P5.70 per kilometer. Cars under this category include four-door compact cars, mid-size sedans, and sub-compact SUVs and AUVs.

UberBlack — with its SUVs such as a Fortuner, Montero, Grandia, Everest — charges a base fare of P90.00, plus P2.24 per minute, plus P13.75 per kilometer.

However, the LTFRB said that it had received complaints that customers had experienced 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.

In response, Grab and Uber over the weekend both implemented a cap on fare surges, but did not elaborate as regards how much. —NB, GMA News