Commuter group seeks set hours for ride-hailing service surge rates

The Land Transportation Franchising and Regulatory Board (LTFRB) asked ride-hailing company Grab Philippines to explain how it computes its fares and surge rates.

According to Joseph Morong's "24 Oras" report, the lawyers for Commuter Safety and Protection (LCSP) had complained to the LTFRB that these surge rates were allegedly imposed in an "unlimited" manner.

“There will always be Christmas, there will be passengers. Every day may traffic may rush hour. Kaya sinasabi namin na dapat malinaw ang parameters para hindi naabuso,” said Attorney Ariel Inton, LCSP President.

For their part, Grab lawyer Attorney Jason Arteche explained that the surge charge takes effect when there are not enough vehicles to accommodate a large number of passengers.

LTFRB board member Atty. Mercy Paras-Leynes nevertheless asked Grab for a more detailed explanation.

As to whether the LTFRB had the power to set the hours when a surge charge can be imposed, LTFRB Central Office Technical Division head Joel Bolano believed so given that the board had the power to regulate the fares of all public utility vehicles.

Meanwhile, Grab said that its franchise allowed the imposition of a surge charge and the LTFRB was aware of the mechanism.

Meanwhile, the LSCP asked Grab to give passengers specific times when surge charges are imposed.

The commuter group also said that Grab has been charging P85 for short trips or trips of less than four kilometers, which they claimed violated the fare matrix issued by the LTFRB.

“Ang sinabi dun the flagdown is P45, every kilometer is I think P15 for sedan, so if you add up, mas mataas ang P85. Sa bawat overcharge, may P5,000 na multa yan so ilang daan, ilang libo na dapat multahan,” Inton argued.

According to Grab, they have no control over the surge charge, which is said to be automatic in the app.

That said, the ride-hailing service suggested that if the LTFRB wanted to prevent surge rates, it should allow an increase in the number of Grab vehicles.

While the LTFRB opened over four thousand additional slots for vehicles, Grab said more than ten thousand slots were still needed.

LTFRB Chair Atty. Teofilo Guadiz said they would issue a decision on Grab's suggestion before the end of January. — Sherylin Untalan/DVM, GMA Integrated News