LTFRB eyes cut in ride-hailing surge fee

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) said yesterday it is eyeing the reduction of surge fee for ride-hailing services during the holiday season.

LTFRB Chairman Teofilo Guadiz said the agency aims to reduce the surge fee by half following the exorbitant charges.

“We are looking at implementing a uniform surge rate and cut it to as much as 50 percent,” Guadiz said in an interview on Teleradyo.

The LTFRB has received complaints about the exorbitant surge fees of transport network vehicle services (TNVS).

Transport network companies (TNC), which operate the TNVS, are currently allowed to charge as much as twice the initial fare for surge fee.

Guadiz said TNVS operators were invited to the LTFRB hearing to explain the surge fee.

TNCs explained that the surge fee is mostly dependent on traffic, but the formula depends on their algorithm calculating demand and supply within an area.

“Based on our study, their algorithm is overpriced. So we are trimming down the surge fee,” Guadiz said.

The LTFRB has opened slots for 5,000 TNVS units this Christmas season to keep up with the demand.

“With this, we hope to reduce, if not totally remove, surge charges on certain hours of the day,” Guadiz said.

The LTFRB is also considering a reduction on the flagdown rate for TNVS from P80 to P65.