LTFRB hits Uber on surge pricing

MANILA, Philippines - The Land Transportation Franchising and Regulatory Board (LTFRB) called on transport network companies (TNCs) like Uber and GrabCar to attend a meeting on Sept. 16 after they allegedly imposed an “unreasonable” fare increase a few weeks after they got their accreditation to operate.

LTFRB Chairman Winston Ginez said the board has invited the TNCs to discuss the alleged “surge pricing” imposed by some of their accredited transport network vehicles (TNVs).

An irate passenger, who requested anonymity, said he was asked by an Uber operator to pay P379.07 for a trip from Ortigas to Guadalupe in Makati. Based on the passenger’s receipt, he was charged P11.46 for normal fare with an additional of P260.61 for “surge x 3.2.”

According to www.uber.com, “at times of high demand, the number of drivers we can connect you with becomes limited. As a result, prices increase to encourage more drivers to become available.”

Meanwhile, a source said that the LTFRB cannot control the fare scheme of all TNCs, unlike taxis as they do not have a “fare matrix.”

Ginez denied the allegations, saying that TNCs were told to submit their fare systems as part on the submitted documents for accreditation under the memorandum circular issued by the board in June.