LTFRB’s surge rule may affect ride availability, says Grab

Grab Philippines said it respected and accepted the government’s order to cut surge pricing for Transport Network Vehicle Service (TNVS) trips, but warned that the temporary measure might hurt drivers and weaken ride availability during the Christmas rush.

The Land Transportation Franchising and Regulatory Board (LTFRB) has set a temporary adjustment to reduce the fare computation for transport network vehicle service (TNVS) during peak hours and other high-demand periods ahead of the Christmas holidays.

LTFRB Chairperson Atty. Vigor D. Mendoza said the adjustment, under Memorandum Circular 2025-056, is only temporary and would be in effect from December 17, 2025, to January 4, 2026.

“Grab has always been a partner of the government, and we share its commitment to easing the daily burdens of our kababayan. It is in this spirit that we respect and accept the recent DOTr–LTFRB decision to temporarily reduce surge prices by 50%,” Grab said in a statement released Friday.

Grab said the cap risks shifting the pressure onto drivers who incur longer travel times, heavier traffic, and higher fuel consumption during the holiday season.

“It is important to emphasize that surge pricing helps ensure driver availability during peak hours, bad weather, and high-demand periods. A significant reduction in surge fees may discourage drivers from going online when they are needed most, ultimately affecting service reliability for commuters,” Grab said.

The LTFRB memo TNCs to reconfigure fare algorithms to keep surge pricing from exceeding the combined per-kilometer and per-minute rates set under MC 2019-036.

"We hope to ensure that the policy’s implementation does not unintentionally shift the burden from riders to our drivers, who we believe deserve fair compensation for the extra time, effort, and fuel required to navigate holiday congestion and safely serve the riding public," Grab said.

Grab said that surge pricing played an essential role in ensuring drivers go online “during peak hours, bad weather, and high-demand periods,” ultimately benefiting commuters through improved ride availability.

“Ultimately, the most sustainable solution to our transportation challenges is the continued development of a strong, efficient, and reliable mass transport system," it added. –NB, GMA Integrated News