Uber PH seeks uberX fare hike

Ride-sharing giant Uber Philippines is seeking higher fares for uberX, its affordable vehicle category, to offset costs associated with increasing fuel prices and new regulations.

Uber Philippines said on Thursday that it sought the government’s approval to increase the fare per kilometer (km) of uberX rides by about 58 percent to 110 percent, depending on the time of the day.

Under its proposal, the fare per km would rise to P9 to P12 from the current rate of P5.70 per km. Unchanged were the uberX base fare and time charge of P40 and P2, respectively, the company said.

The proposed increase, filed with the Land Transportation Franchising and Regulatory Board today, would help Uber drivers recover part of their expenses, it noted.

“The costs that driver-partners have to bear to maintain their vehicles is projected to increase due to several factors, including requirements under the Omnibus Franchising Guidelines to further improve safety and quality of service, increasing fuel prices, and new excise taxes on petroleum,” Uber Philippines said.

Under the newly enacted Tax Reform for Acceleration and Inclusion law, gasoline will be subject to a higher excise tax of P7 per liter.

Grab, which is Uber’s main rival in the Philippines, earlier this month sought the LTFRB’s approval to increase its fare per km to P11 to P15. This is higher than the previous range of P10 per P14. It also sought the increase of its per-minute running charge from P2 to P2.10.

Last October 2017, the LTFRB approved a fare increase for the taxi industry. The new structure involved a flag down rate of P40 for taxis in Metro Manila and a per kilometer rate of P13.50. Taxis also charge P2 per minute of running time.