Gatchalian seeks long-term solution amid complaints vs Grab’s fare pricing

MANILA, Philippines — Senator Sherwin Gatchalian on Saturday said he would file a resolution in a move to scrutinize ride hailing firm Grab’s fare pricing, especially during peak hours.

Gatchalian said that while Grab provided a temporary relief to passengers by reducing its surge pricing cap from 2x to 1.7x until December 24, it is merely a “band-aid” solution.

The move, the senator added, does not address issues with Grab’s high fare pricing.

“Maghahain ako ng resolusyon upang busisiing mabuti kung ano ba ang puno’t dulo ng problema sa surge pricing. Gusto natin malaman kung dapat ba na gawing mas mababa pa ang 2x surge price na nae-enjoy ng mga TNVS (Transport Network Vehicle Service) at ano ang magiging impact nito sa pangkalahatan, lalo na sa usapin ng supply at demand,” Gatchalian said.

(I will file a resolution to scrutinize thoroughly the root cause of the issue of surge pricing. We want to know if we should lower the 2x surge price that TNVS are experiencing and what would be its impact to the entire issue, especially on the topic of supply and demand.)

Commuters have complained about the ride-hailing firm’s high fare pricing and lack of availability, especially during peak hours.

Its representatives recently met with the officials of the Land Transportation Franchising and Regulatory Board (LTFRB) to discuss the matter and agreed to temporarily reduce its surge pricing cap.

Representatives from the ride-hailing firm claimed that their online drivers decreased by 3 percent as of December, causing a poorer allocation of units for an increasing demand.

The traffic situation also made travel times longer and thus lessened the number of drivers available at a given time, they added.

“Let’s not look for band-aid solutions or else these problems will continue to persist. In fact, the complaint on surge price has always been recurring, especially during the Christmas season. We are demanding long-term solutions to our regulator to finally put this problem to rest,” Gatchalian said.