LTFRB: How to adjust Uber, Grab fares if algorithms differ?

The Land Transportation Franchising and Regulatory Board on Thursday said it would hear at the same time the fare increase petitions filed by Uber and Grab , but that it was considering coming out first with a single fare structure for their partner vehicles to simplify fare adjustments.

“We already have fare structures for buses, jeepneys and taxis. We are moving towards that direction because the fare structures of Grab and Uber are different,” LTFRB Chair Martin Delgra III said in an interview on dzBB.

Delgra noted that the two transport network companies (TNCs) use different algorithms in computing their fares, and that the board recognizes their propriety rights over their algorithms.

“But as far the fare is concerned, that is the responsibility of the regulatory body,” he added.

Uber has petitioned for a fare hike from P5 to P12 per kilometer, while Grab is seeking a 10-percent increase equivalent to P11 to P15 per kilometer.

Both firms cited rising fuel costs due to additional taxes imposed under the TRAIN law. Delgra said the board would again tackle both petitions on April 3.

The fare structure for TNCs would most probably resemble the one for taxis, which have no fixed routes, he added. —Jerome Aning