AUTO INDUSTRY NEWS

LTFRB puts surge cap on rates of Grab, Uber

LTFRB puts surge cap on rates of Grab, Uber image

Eric Tipan / | December 28, 2016 13:42

Surge multiplier shall be twice the rate for time and distance sans base fare

The Land Transportation Franchising and Regulatory Board (LTFRB) has finally put their foot down after complaints came up last Friday, December 24, of rates ranging from Php 2,000 to Php 28,000 from online transport systems as commuters hurried home bearing gifts and packages for the Christmas weekend.

A surge cap has been imposed on both Uber and Grab for their services should demand for their services reach a critical level again this coming New Year’s long weekend.

As per the order by the LTFRB, the ‘surge multiplier’ should only be twice the rate for time covered and distance travelled excluding the base fare.

In compliance, Uber has lowered its multiplier max to 2.9 from 5.0 while Grab brought their down from 2.6 to 1.6.

Both companies were also given 10 days to file their individual position papers on ‘issues such as liability and reasonable determination of rates.’

The LTFRB earlier warned Uber and Grab that their accreditation was either going to be cancelled or suspended should their rates continue to reach exorbitant prices.

Uber’s surge cap will run until January 15, 2017 while Grab will implement their cap until January 30, 2017.