Uber joins queue to hike ride share fees

Uber Philippines is seeking increased fare for its popular affordable vehicle category as drivers feel the pinch of higher fuel prices and new regulations.

The move came after rival Grab also sought to increase fare earlier this month.

Late last year, the Land Transportation Franchising and Regulatory Board (LTFRB) allowed a new fare scheme for taxis, effectively increasing rates.

Uber said on Thursday that it filed a petition in the LTFRB to increase fare per kilometer of uberX rides by 58 to 110 percent, depending on the time of the day.

Drivers’ costs

In its petition, Uber sought to increase fare to P9 to P12 from the current P5.70 per kilometer. UberX base fare and time charge of P40 and P2 would not change, Uber said.

It said the petition for fare increase would help drivers recover part of their expenses.

In a statement, Uber said aside from fuel price increases, drivers also have to bear the additional costs brought by new franchising guidelines and a requirement to improve safety and quality of service.

The newly enacted Tax Reform for Acceleration and Inclusion Act subjected gasoline to a higher excise tax of P7 per liter.

Grab earlier this month sought LTFRB approval to increase fare per kilometer to P11 to P15. This was higher than the previous rates P10 to P14. It also sought an increase in per minute running charge from P2 to P2.10.

Taxi fare hike

In October last year, the LTFRB approved a fare increase for the taxi industry. The new structure involved a flag down rate of P40 for taxis for the first 500 meters in Metro Manila and a per kilometer rate of P13.50. Taxis also charge P2 per minute of running time.

The LTFRB, under the Duterte administration, launched a crackdown on the ride-sharing sector since it came to power in July 2016. More recently, it set a cap on the number of Uber and Grab cars to 45,000 vehicles from an estimated pool of 100,000 vehicles today.