LTFRB: Nothing wrong with ‘surge pricing’ in Uber, GrabCar
The Land Transport Franchising and Regulatory Board (LTFRB) on Wednesday said that it has found nothing wrong with the “surge pricing” of transportation network companies (TNCs) like Uber and GrabCar, as evidenced by the approval of their accreditation.
“[Surge pricing] is allowed.We allowed it through the virtue of the issuance of the certificate of accreditation,” LTFRB Chairman Atty. Winston Ginez told reporters.
Ginez said that the concept of “surge pricing” was explained to them during talks with TNCs leading to their accreditation.
“During our consultation with them, they have explained to us how price surging will kick in. So now, we will ask them to put it into writing,” he added.
He said that the board is only reviewing the implementation of surge pricing due to the petition of 1-United Transport Koalisyon (1-Utak) party-list group which is assailing its legality.
READ: Party-list group: Uber’s ‘unfair’ pricing system detrimental to PUVs
However, the LTFRB chairman said that while it has approved “surge pricing,” it will also review the rates set by TNCs so as to not put the public in a disadvantageous position.
“We are also concerned about the [surge pricing]. We will not allow the public to be at the mercy of the TNVS (transportation network vehicle service),” Ginez said.
The issue of price surging on TNVS, or cars which use the applications of the TNCs, was highlighted on Sept. 8 when TNVS became scarce due to heavy rains. During that night, Uber’s rate shot up to five times higher than usual.
READ: IN PHOTOS: Heavy rains flood parts of Metro Manila | Flash floods trigger Metro Manila ‘carmageddon’
On the other hand, Ginez refused to answer the question on whether or not he thinks surge pricing is fair.
“I am acting as a judge in this case so I won’t comment on whether their actions are justifiable or not,” he said.
He said that the LTFRB will exercise its oversight functions to review the rates set by the TNCs. CDG
