LTFRB eyeing 50 percent reduction in TNVS surge rate

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MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) announced on Tuesday that it is considering reducing surge fees for Transport Network Vehicle Services (TNVS) by 50 percent.

LTFRB Chairperson Teofilo Guadiz III said in a radio interview that complaints regarding surge fees prompted the agency to scrutinize the formula used by TNVS operators in determining these fees.

“Nagpatawag ako ng isang hearing at pinagpaliwanag po natin sila. May mga sinasabi silang algorithm po, which is really based on certain formula na ‘pag na-traffic or kakaunti yung TNVS sa isang area, ‘yung demand is malaki, yung supply is konti. So biglang pong tumataas yung price but mostly because of traffic,” Guadiz said in a Teleradyo interview.

(I called for a hearing and asked them to explain. They mentioned an algorithm, that is based on a certain formula, When there’s heavy traffic or when there are fewer TNVS units in an area and the demand is high but the supply is low, the price suddenly increases, mostly because of traffic.)

“So ang formula nila, ‘yan ang kinikwestyon ko po ngayon. Then baka pwede gawin nalang uniform rate or i-reduce yung surge fee to as much as 50 percent,” he added.

(“So it’s their formula that I’m questioning right now. Then maybe we can make it a uniform rate or reduce the surge fee by as much as 50 percent.)

The LTFRB reported on Sunday that 5,000 additional TNVS units have been approved to address the expected holiday rush.

With this increase in ride-hailing vehicles, Guadiz expressed hope that TNVS operators could reduce surge fees during certain hours of the day.

“Usually po kasi ‘yan, ang surge fee is in the morning, ‘yung pag pasukan po, at saka sa hapon pag-uwian na between 4 to 7 o’clock po,” he stated.

(Usually, the surge fee occurs in the morning during rush hour and in the afternoon, from 4 to 7 o’clock, when people are heading home.)

Aside from reducing surge fees, Guadiz also said that the board is lowering the flag-down rate for Grab, which is considered the largest TNVS operator in the country.

According to Guadiz, Grab’s current flag-down rate of P80 will be reduced to P65.

“Malamang magpalabas kami ng decision din bago mag-Pasko. Parang reminder ko sa kanila and the resolution from the board na ibaba nila. Ang issue dyan is not more on the surge fee; it’s more on the flag-down rate nila. Masyado kaming natataasan,” the LTFRB chairperson explained.

(We are likely to release a decision before Christmas. It’s like a reminder to them and the resolution from the board to lower it. The issue here is not so much about the surge fee but more about their flag-down rate. It’s just too high for us.)

To help monitor surge fees and flag-down rates, Guadiz also encouraged passengers to file formal complaints.