THE Land Transportation Franchising and Regulatory Board on Wednesday ordered ride-sharing service firm Grab Philippines to lower its surge cap from two times to 1.5 times while it is still processing the applications of new transport network company players.
“This is to ensure that the fares will be at a rate that is acceptable to the existing number of TNVS [Transport Network Vehicle Service] vehicles that are transferring to Grab,” LTFRB board member Aileen Lizada said at a hearing.
The management of Grab said it will comply with the downgrading of its surge rate.
“We respect the board’s decision to further lower the cap on surge and we understand their justification for it. This is in fact a critical time,” Grab spokesman Leo Gonzales told reporters. “We believe that as soon as the new players come in, the board will study again the cap.”
Gonzales said the drivers would be affected by the LTFRB’s order.
“We hope they will understand the reasons for it. We only do our best to serve the public,” Gonzales said.
“I’m sure the riding public will be happier. This whole issue with the acquisition and all and the effect on the market, the fares is very dynamic. We understand the board.”
At the same hearing, Grab’s lawyers said they were still interested in seeking reaccreditation before the LTFRB.
When asked by Lizada about the high fares, the lawyers said prices were being set in the marketplace.
They also attributed the price increases to “drivers going offline, drivers who are off the road and even the holidays” as some drivers took their vacation.
Grab, however, assured the public it would be compliant with the fare rates set by the government.