Grab, Uber rules under review

The Land Transportation Franchising and Regulatory Board (LTFRB) is reviewing the rules governing transport network companies (TNCs) not only to discipline erring drivers but to also put a cap on the riding applications’ surge pricing scheme.

LTFRB Chair Martin Delgra III said on Monday that the agency was considering releasing revised guidelines on TNCs just before the holiday rush when the demand for public transportation goes up. These will include putting a limit on surge pricing as well as requiring drivers to undergo training at the LTFRB to become better and more efficient at their job.

According to Delgra, they are looking at the “level of accountability” of TNCs given the number of complaints filed against erring drivers at the LTFRB ranging from arrogance to sexual harassment.

“Any vehicle for hire to the public would fall under regulation by this agency, and that includes all aspects of the public transportation system, including fare,” he said.

Delgra noted that the “unreasonable” surge pricing scheme was one of the “significant issues” the LTFRB was trying to address. He pointed out that a relative of his was recently charged P1,000 for a ride from Bonifacio Global City to Quezon City on a rainy day.

Delgra said that in his earlier meeting with TNCs such as Grab and Uber, the companies “affirmed their commitment to place themselves under regulation.”

Asked how the cap on the surge pricing scheme would be put in place, Delgra said that they were still studying the formula to adopt.

Surge pricing allows TNCs to temporarily hike fares when the demand for rides exceeds the number of available drivers.

Grab currently has a rush hour rate which is a “temporary increase in GrabCar fares to make sure we can accommodate all GrabCar riders.”

Similarly, Uber’s surge pricing is meant to “encourage more drivers to get on the road and head to areas of the city where demand for rides
is high.”