THE transport network company Grab Philippines has been told to explain to the Land Transportation Franchising and Regulatory Board (LTFRB) its alleged “price surge” and the P85 minimum base fare for short trips it charges.
The LTFRB has given Grab five days to submit data on the number of times they charged a minimum base fare of P85 for short trips.
Under the fare matrix approved by the LTFRB in September 2022, the minimum fare for a Sedan-type transport network vehicle service (TNVS) is P45; P55 for AUV/SUV-type TNVS; and P35 for hatchback-type TNVS.
The LTFRB, on Thursday, conducted the last hearing on the “surge pricing” issue.
“There will be no more hearing on this issue. We have already asked them to submit their position paper and that’s when we will come up with a decision,” LTFRB Chairman Teofilo Guadiz III said.
Guadiz said the decision will be issued by the LTFRB by the first week of February.
“What we intend to do now is to put up parameters… that only one entity can set the pricing. 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 an increase. What we would like to establish is at what time they can impose an increase and in what areas they can make the increase,” he said.
Sought for comment, Grab said it respects the LTFRB’s view on Grab’s surge pricing mechanism.
“We believe that further regulating surge pricing beyond caps/existing regulation must be approached very carefully to protect and support all transport stakeholders, including the riding public,” Grab said.