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LTFRB pressed to impose strict rules on surge pricing before holiday rush

A network of digital advocates called on to the Land Transportation Franchising and Regulatory Board to impose strict rules regarding surge pricing of transport network vehicle service. 

Digital Pinoys national campaigner Ronald Gustilo said that the perenial problem of exorbitant fares during the holiday rush should be a thing of the past if only LTFRB will impose strict rules on surge pricing. 

“Every year, TNVS passengers have been complaining of fares doubling, tripling, and in some instances even higher than that, during the holiday rush, when the service is much more needed. This should stop now and LTFRB should do its job to protect the commuters from insanely high fares during the busiest season of the year.”

Gustilo added that the perpetual surge pricing of TNVS companies should be investigated and penalized, even after more units were onboarded by TNVS firms. 

“The issue on perpetual surge pricing should be resolved as soon as possible. This issue has burdened many passengers, even when booking cars during off-peak hours. This is a clear violation of the rules and regulations imposed by LTFRB.”

In a study conducted by the Philippine Center for Investigative Journalism, rides of the GrabCar service always included surge fees, the additional cost computed by an algorithm to get more cars on the road. However, the data also suggested that customers still often endure lengthy wait times even when fares were high.

Since Grab’s acquisition of Uber, the TNVS firm has been penalized and fined a total of P86.7 million for violating its merger deal commitments, particularly on pricing and service commitments.