The Land Transportation Franchising and Regulatory Board (LTFRB) has appealed to transport network companies not to impose exorbitant fare hikes amid the expected increase in demand for their services during the holiday season.
LTFRB chairman Martin Delgra III reiterated that the applications for new franchises by transport network services (TNVS) such as Uber and Grab are still suspended pending review of existing guidelines amid reports of price surges when demand for rides exceeds the number of vehicles.
Delgra said Uber and Grab can submit their respective proposals on their rates and that the agency will determine if they are reasonable for the commuters.
?Transport network companies have stated that they are willing to submit to a level of regulation that includes the price and fare mechanism,? Delgra stated in an interview with reporters on the sidelines of the launch of ?Oplan Isnabero? against picky taxi drivers.
Meanwhile, Uber Philippines explained that ?surge pricing? only happens when demand is high and there are insufficient cars in the area. But as more cars are deployed on the roads, rates will go back to normal.
For its part, Grab stated that fare movements depend on several factors such as passenger demand, app usage, road conditions, and traffic. Unlike Uber, Grab has a fixed fare system.
Operators of taxis and public utility vehicles (PUVs) have opposed the emergence of ride-sharing apps, saying they need to comply with certain requirements such as franchises and insurance coverage. Moreover, they have complained over surge pricing as they are not allowed to apply it. — Aerol B. Patena, PNA