Taxi operator says haggling for higher fare is similar to Grab, Uber price surge

Taxi drivers who haggle for a higher fare is similar to the price surge mechanism of transport network companies (TNCs), a taxi operators’ group said Thursday urging that the same regulations be applied to cabs as well as Uber and Grab.

The haggle between taxi drivers and passengers is “not justified,” but there is a reasonable explanation behind it, Bong Suntay, president of the Philippine National Taxi Operators Association, told the Senate public services committee.

“Kapag ang pasahero magpapahatid sa lugar na ma-traffic, malulugi ang driver,” Suntay said. He explained that that a taxi driver stuck in traffic for an hour would earn only P75.

This means that the taxi driver would make only P15 per hour, with P60 going to the operator.

“A driver who pays a boundary of P1,200 would need P60 an hour to meet the boundary; so this is the reason why may mga taxi driver tumatanggi na maghatid sa ma-ta-traffic,” he added.

The driver haggles for a fare higher than what the meter would dictate going through traffic congestion, Suntay noted.

“This is also similar to the rationale of surge pricing. They’re trying to incentivize drivers para pag traffic, pag may high demand, pupunta 'yung auto nila sa pasahero,” he said. “If they do not do it, hindi susunduin ng mga sasakyan nila yung pasareho.”

Suntay complained why Uber and Grab are allowed to have dynamic pricing while taxi drivers are limited by their meters.

On the issue of passengers preferring to hail new vehicles instead of old cabs, Suntay said drivers and operators are having a tough time buying new taxis because the fare in the Philippines is the “lowest in Asia.”

“We would like to acknowledge that there may be some complaints about the service we give. Baka sabihin may mga lumang taxi, hindi naman lahat. We have to look at the reason why naluluma ang taxi,” he said.

Taxis are required to put huge markings on their vehicles while Uber and Grab are not, making theirs look cleaner, Suntay noted

"Minsan yung pasareho iisipin kung sasakay na ba o babasahin 'yung taxi sa dami nang nakasulat," he said.

Senator Grace Poe, chairman of the Senate committee, said the LTFRB should require taxis to “update their fleet and teach their drivers to be more courteous” to encourage passengers to take cabs.

“TNVS provide the safety and convenience that we all look for in public transportation. Siguro, dahil ilang beses na rin naging hindi maganda ang karanasan natin sa mga taxi, nagsawa na rin ang regular nitong mga pasahero at lumipat na sa Grab at Uber,” she pointed out.

“We have to acknowledge that unlike taxis, Uber and Grab have a complaint mechanism and allow passengers to rate their experience. Diretso agad kung mayroong problema. Drivers are also more courteous because Grab or Uber can automatically disconnect or remove from their system any pasaway or erring driver,” Poe said. — VDS, GMA News