Ridesharing firms reimpose P2-per-minute charge

MANILA, Philippines — Ridesharing companies yesterday started to reimpose the controversial P2-per-minute charge after the Land Transportation Franchising and Regulatory Board (LTFRB) gave them the green light.

In a Sept. 5 memorandum circular, the LTFRB said the per-minute charge can apply to all types of transport network vehicle service (TNVS) units, including sedans, six-seaters, sport utility vehicles and sub-compact cars.

The memo is the first issued by the LTFRB pertaining to the standard fare structure applicable to transport network companies (TNCs) and their TNVS units.

In a statement, Grab thanked the LTFRB for “hearing the plea” of their drivers in reinstating the P2-per-minute travel time charge.

It said it will lower the surge cap to 1.6x instead of the 2x to help their passengers cope with the adjustment in the charges. 

Hype president Nick Escalante said they have also included the P2-per-minute charge in their fare matrix. 

Despite the authorization, the two TNCs’ fight is not yet done as they are still facing cases before the LTFRB for allegedly imposing the charges without authority.

Grab is still appealing a P10-million fine imposed by the LTFRB for allegedly imposing the charge without authority from the board.