THE Land Transportation Franchising and Regulatory Board (LTFRB) is considering a 50- percent reduction in surge fees for a ride-hailing service.
In a radio interview, LTFRB chairman Teofilo Guadiz said the agency has looked into algorithm and formula of Grab and plans to either impose a uniform rate or reduce the surge fees by as much as 50 percent.
In a statement, TNVS Community Philippines expressed disappointment with the LTFRB’s plan to further reduce and tighten surge pricing for transportation network companies (TNCs) such as Grab saying this will have a significant impact on the income of transportation network vehicle service (TNVS) drivers, especially as they navigate the holiday traffic this December.
Currently, Grab has around 40,000 partner drivers and plans to add 5,000 more units to meet increasing demand.
Guadiz expressed hope the additional vehicles would help lower surge prices during peak hours.
“With this, we hope to reduce or even eliminate surge charges during certain hours, especially in the morning rush and in the afternoon, from 4 to 7 p.m.,” he said.
Grab declined to comment on Guadiz’ pronouncement.
Ninoy Mopas, TNVS Community Philippines spokesperson, said with the LTFRB’s plan, drivers would incur losses in fuel, boundary fees, and other expenses, especially since they will be traveling longer distances due to traffic, even for the same route.
“Due to the fair surge fees, we have been able to recover some of the additional costs incurred during this holiday season. The surge pricing implemented by TNCs is in line with LTFRB regulations,” Mopas said.
“We are appealing to the LTFRB to initiate an urgent dialogue regarding surge pricing and its impact on drivers’ livelihood,” he added.
LTFRB Memorandum Circular No. 2019-036 sets the flag-down rate for sedan-type Transport Network Vehicle Services (TNVS) is P40, with a fare of P15 per kilometer and P2 per minute of travel. For Premium AUV/SUV, the flag-down rate is P50, with P18 per kilometer and P2 per minute. Hatchback or sub-compact TNVS has a flag-down rate of P30, with P13 per kilometer and P2 per minute.
