LTFRB tells Grab to explain 'surge' pricing, fare computation
MANILA, Philippines — Transport booking app company Grab Philippines has been directed to explain how it computes its fares, particularly during demand surges and for short trips, the Land Transportation Franchising and Regulatory Board said in an advisory on Tuesday.
LTFRB said it directed Grab to submit documents on how it computes its fees for short distances, which it said has often been pegged at P85.
"The Board specifically wanted to see how Grab arrived at this fare rate and asked the company to present their computation on 'surge' fees during the next hearing," LTFRB said.
The LTFRB will hold its next hearing with Grab representatives on the morning of Friday, January 12. It added that Grab missed a previous hearing scheduled last December 12 because representatives said they had come in close contact with someone who tested positive for COVID-19.
Grab, a market leader among booking apps, has become an alternative to taxis and public transportation despite the higher fares. High demand during the holiday season led to frustration among commuters, some of whom had to wait for hours to get a ride.
In a January 6 release, Grab said the shortage of available rides was due to "mobility standstill", which likely means heavy traffic, and the economic effects of the pandemic that led to some driver-partners missing payments on their vehicles and others seeking better pay in other fields.
Grab said it is looking for new GrabCar driver partners — Grab drivers are not employees — with 4,433 new Transport Network Vehicle Service slots available this month. It said getting new partners on board would help make the booking experience better for its users.
The company said it is offering bonuses and legal assistance of up to P10,000 for applicants with six-seater vehicles and up to P6,000 for those with four-seater vehicles.
According to a STAR report citing LTFRB data, there are roughly 7,000 drivers with a TNVS franchise, on top of a few hundred more with provisional authority, serving commuters.
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