De Lima, Gatchalian seek clarity on Grab's fare surge, booking difficulty

Senators Leila de Lima and Sherwin Gatchalian are seeking for more clarity on the surge in fares, and booking difficulty being experienced by commuters using the services of the app-based ride hailing firm Grab Philippines.

In a statement on Saturday, de Lima called on the Land Transportation Franchising and Regulatory Board (LTFRB) to monitor the fare scheme of Grab to "ensure that commuters’ rights are not abused."

Also, the senator noted that she learned the booking prices of Grab have surged lately and that it has become harder for passengers to book a ride, especially during rush hours.

“The app-based, ride-hailing company points to higher demand as the cause. This comes on the heels of Grab being asked by authorities to refund its customers for overpricing the cost of their rides,” De Lima said.

“Nananawagan tayo sa ating mga awtoridad na masusing bantayan ito, at siguruhing walang nangyayaring pagsasamantala. Sa ganitong paraan, pare-pareho nating mararating ang gusto nating destinasyon: ang maaliwalas na biyahe kung saan walang nadedehadong Pilipino,” she added.

Grab Philippines president Brian Cu explained that the surge in booking prices was due to higher demand and heavy traffic.

"Ang nare-receive po nating bookings per day is around 700,000 to 800,000 users ang nagta-try mag-book. Ang mga sasakyan po natin sa daan ay 35,000 to 36,000 lang," Cu said.

"If the base fare goes up and the surge kicks in, talaga po'ng minsan double ang makikita nila. Ang hinihiling ko lang sa ating users diyan ay konting patience lang sa pag-book. And if they book, try to book outside of rush hour," he said.

Amid the holiday rush, several Grab users are complaining about the sudden rise in fare rates and difficulty in getting a ride, which the ride-hailing company blamed on higher demand and limited cars that could serve a big number of passengers.

De Lima, however, is not convinced with Grab's explanation.

“Asking your users for more patience is not enough. Ensure you are fully committed to the rights of your consumers. Do not take them for a ride with excuses; do not deceive or cheat them,” she said.

“Sa kabila ng mas mahal na pamasahe, marami nating kababayan ang gumagamit ng mga ganitong app para makaiwas sa kalbaryong dulot ng napakabigat na traffic, para hindi ma-late sa trabaho, makaltasan ng sweldo, mapagalitan ng boss, at lalo na, para makauwi nang mas maaga at makapiling ang pamilya. Suklian naman sana ang pagtangkilik na ito ng malasakit, maayos at makatarungang serbisyo para sa kanila,” she added.

De Lima filed Senate Bill No. 1165, or the “Passenger Transit Rights Acts of 2019,” which seeks to establish clear standards for service for the riding public and provide relief against unprofessional and abusive drivers.

In a separate statement, Gatchalian took note of Grab's temporary reduction in its surge pricing cap, but said it is just a "band-aid solution" that will not effectively address Grab’s high fares brought about by the lack of available drivers especially during peak hours, and the lack of competitors in the market.

Grab has temporarily reduced its surge pricing cap from 2x to 1.7x on Friday after officials of the Land Transportation Franchising and Regulatory Board (LTFRB) met with Transport Network Vehicle Service (TNVS) companies to address the mounting consumers’ complaints on the issues of lack of availability and overcharging.

The reduction will be in effect only until December 24.

Surge pricing is a component in the fare matrix of the ride hailing firm. It is computed based on the time covered and distance traveled in a trip, excluding the base fare.

“Pinaunlakan natin ang paanyaya ng LTFRB nuong Hwebes at narinig natin ang commitment ng Grab na babaan pansamantala ang kanilang surge cap hanggang December 24. Bagamat makakatulong ito sa mga pasahero, para sa akin hindi ito ang long-term na solusyon upang matugunan ang problema sa mataas na pamasahe ng Grab na patuloy na nagpapahirap sa ating mamamayan,” Gatchalian said.

“Maghahain ako ng resolusyon upang busisiing mabuti kung ano ba ang puno’t dulo ng problema sa surge pricing,” he said.

November 2019 data from the LTFRB shows that it has already issued provisional authority to 49,226 operators and issued 11,305 certificates of public convenience, bringing the total number of TNVS units in the country to 60,531.

Grab, being the dominant player in the country’s TNVS industry since the departure of Uber last year, have 45,000 operators while the remaining 15,531 units are distributed among minor TNVS players.

The company, however, reported that its daily ridership in November was around 700,000 and even went up by approximately 80% this December. —Ted Cordero/LBG, GMA News