‘Blame Abaya for Uber, GrabCar fare matrix’

MANILA, Philippines - Department of Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya is the one who allowed app-based transport network companies (TNCs) to set their own fare scheme, which includes “surge pricing,” the Land Transportation Franchising and Regulatory Board (LTRFB) said yesterday.

“I have to ask the DOTC because (Department Order 2015-11) came from them. It didn’t come from us,” LTFRB chief Winston Ginez told reporters when asked why the TNCs were allowed to set their own fare matrix. “Ask Secretary (Abaya).”

He clarified that the LTFRB was informed about a provision in the DOTC order that allowed Uber and GrabCar to set their own fare schemes.

The order, dated May 8, allowed online-enabled transportation services to address the large demand for transport services in expeditious and responsive ways.”

In the same order, the TNCs were allowed to set their own fare matrix “subject to oversight from the LTFRB” only in cases of abnormal disruptions of the market such as typhoons, strike, civil war and “other cause of an abnormal disruption of the market which results in the declaration of a state of emergency by the President.”

The department order was signed by Abaya.

Fare surges 

Uber has admitted implementing fare surges for high-demand periods and areas.

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.”

Ginez clarified that commuters have the option to accept the fare set by Uber’s accredited transport network vehicle (TNV) drivers, citing it as a pre-arranged transportation system.

He said only a court order can stop the TNCs from implementing their own fare matrix.

Lawsuits

Various groups have filed charges against the LTFRB for allowing Uber and GrabCar to set their own fares.

Transport group 1-Utak filed a petition with the LTFRB, asking the board to cancel the accreditation for all TNVs operating in the country.

The Stop and Go coalition had asked a court to issue a temporary restraining order against the DOTC’s department order. 

Last week, Alliance of Concerned Transport Organizations president Efren de Luna filed graft and corruption charges against Ginez and LTFRB member Ronaldo Corpuz with the Office of the Ombudsman for allowing Uber and GrabCar to operate without fixing fare rates.  

The DOTC defended its move to allow TNCs to set their own fare matrix.

The department order creating the transport network service vehicle category “was meant to modernize” public utility vehicle services by providing the public “with a convenient and safe commuting option. It has hurdled several challenges from competitors, which are unable to provide comparable services, and it will withstand further attacks, having been issued with full legal basis,” DOTC spokesperson Michael Arthur Sagcal said in a text message yesterday.