LTFRB caps Uber, Grab surge prices

The Land Transportation Franchising and Regulatory Board (LTFRB) ordered on Tuesday an immediate cap on the surge pricing scheme of transport network companies (TNCs) Grab and Uber.

In an order issued to the two TNCs, the LTFRB limited the maximum allowable fare price surge to “twice the rates for time covered and distance traveled, excluding the base fare.”

Under this computation, the surge price for a 10-kilometer ride lasting for an hour should cost an Uber passenger only P348. A Grab passenger taking the same route will spend a minimum of P200 (Grab Sedan) to at most P280 (Grab Premium).

This is on top of the base fare of TNCs, which will not be affected by surge pricing. Grab’s base fare is P30 while its premium service is at P70. UberX charges a base fare of P40 while UberBlack is at P90.

The LTFRB also directed Grab to lower its fare per km rate from between P12 and P16 to P10-P14, depending on the type of vehicle used.

Earlier, several commuters complained to the LTFRB about the unreasonable surge prices being charged by the TNCs—as much as P28,000 for one ride.

LTFRB board member Aileen Lizada said that their order would be in effect until they come out with a memorandum circular. The TNCs have been given 10 days to submit their position paper on issues such as their liability, accountability and reasonable determination of fares.