LTFRB gives Grab 5 days to explain surge fee

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board has given transport network company (TNC) Grab five days to submit its data on the additional charges imposed on passengers.

LTFRB Chairman Teofilo Guadiz said yesterday’s hearing would be the last before the board decides whether to allow, disallow or modify the P85 minimum charge that Grab has been collecting from commuters.

“There will be no more hearing on this issue. We have asked Grab to submit its position paper and that’s when we will come up with a decision,” Guadiz said.

The LTFRB is expected to issue its decision within the first week of February.

Guadiz said they are threshing out two critical issues on surge pricing, the minimum charge and the stop base fare that Grab has been imposing on passengers.

He said there is a need to impose parameters on the surge pricing of Grab, adding it could not be arbitrarily set by the TNC alone.

The parameters could include the times that TNCs can impose surge fees as well as the areas where they can make a fare increase.

“While it is true that the party has the mechanism, it is still the government that exercises regulatory functions and defines when they can impose a fare increase,” Guadiz explained.