LTFRB: Overcharging TNCs face sanctions

MANILA, Philippines — Don’t abuse your discretion in charging fares this holiday season or there will be sanctions, the Land Transportation Franchising and Regulatory Board (LTFRB) warned transport network companies (TNCs) on Wednesday, marking the second time in a week that it cautioned ride-hailing services amid reports of price gouging.

According to LTFRB chair Martin Delgra, the transport board continues to receive “mounting complaints” not only on overcharging, but also on the insufficient number of drivers on the road to cater to the swell of passengers during the holiday season.

He noted in a statement that the LTFRB had issued around 49,000 provisional authorities and 11,000 certificates of public conveniences (CPCs) to transport network vehicle services (TNVS) drivers, all under nine competing ride-hailing platforms, including Grab.

In theory, this meant that there should be 60,000 drivers on the road to accommodate the riding public. The current cap for TNVS drivers is at 65,000.

Grab, which according to the Philippine Competition Commission (PCC) has cornered 99 percent of the country’s ride-hailing market, currently has 36,000 drivers on its platform. But while the TNC  assured the public that these drivers were all active, the number was staggeringly disproportional to the 700,000 to 800,000 bookings made daily.

“The question here is why are there only a few units on the road?” Delgra asked. “The TNCs have to clarify this to us and to the riding public.”

“Do not abuse the clamor for TNVS this holiday season because we will not hesitate to revoke your franchise should you continue to violate its terms,” he added.

Delgra also reminded the TNCs that they must follow the fare structure guidelines set by the LTFRB, warning that the board was continuously reviewing and monitoring their fare setting computation to determine any violation.

Grab was penalized earlier by the PCC for supposedly charging beyond the acceptable fare range.

Under the LTFRB’s Joint Administrative Order 2014-1, overcharging is equivalent to a fine of P5,000 per passenger.