Party-list group: Uber’s ‘unfair’ pricing system detrimental to PUVs

A party-list group on Wednesday called for the suspension of the accreditation given by the Land Transport Franchising Regulatory Board (LTFRB) to popular mobile application-based ridesharing service Uber over its pricing system.

During the hearing of its petition calling for the suspension of Uber’s accreditation over its pricing system, 1-United Transport Koalisyon (1-UTAK) party-list group alleged that it is “unfair” for other public utility vehicles to wait for LTFRB approval to adjust its fares while Uber and other  transportation network companies (TNCs) can set and adjust their fares.

1-UTAK Chair Vigor Mendoza is assailing the legality of the department order issued last May which created TNCs as a new transport service category, saying that it granted such companies the power to set their fares.

Mendoza said that their petition before the regulatory agency boils down to a single demand: to have an equal playing field for TNCs like Uber and public utility vehicles in terms of pricing.

He also cited the need of having “reasonable and affordable” pricing for TNCs, citing what happened on Sept. 8 when heavy rains pushed for the five-fold increase of the usual rate of Uber vehicles.

“What drivers are seeking is equal treatment. If the law states that fare adjustments should undergo public hearing, it should be abided. You cannot provide a service which is unreasonably priced, even if it is efficient. What our law states is that fares should be reasonable and affordable,”  Mendoza said.

On their part, Atty. Grace Ann Lazaro, counsel for Uber, claimed that they are allowed to set their rates in accordance to the the department order which provided their accreditation as a TNC.

“When Uber applied for accreditation, we believe that the overall board has examined the fare structure we submitted,” Lazaro said.

However, LTFRB Chairman Atty. Winston Ginez said that the regulatory agency has oversight functions to peg the rates set by Uber and other TNCs.

“We have the power to adjust the fare to what we think will serve the interest of the public,” Ginez said.

The LTFRB is yet to decide on the petition as it gave 10 days for each party to send their respective position papers.