LTFRB lowers Grab surge pricing cap amid illegal fare allegation | Rappler

MANILA, Philippines – Lower Grab fares during peak hours.

The Land Transportation Franchising and Regulatory Board (LTFRB) gave this order on Wednesday, April 11, to Grab, telling the ride-hailing service to lower its surge pricing cap during peak hours from 2.0 to only 1.5 times the normal fare.

Surge pricing was capped at twice the rates for time covered and distance traveled only, and not for the base fare.

This amends LTFRB’s December 2016 order setting the fare structure of Grab.

The order is effective immediately.

LTFRB Board Member Aileen Lizada said the board deemed it reasonable to lower Grab’s surge pricing cap since consumers are left with only Grab as their option for ride-hailing services, given the latter’s acquisition of Uber.

“The board directs Grab to lower its surge from 2 to 1.5. Why? [The] LTFRB is processing the new TNC players. This is to ensure that the fares will be at a rate that is conducive and acceptable to the existing number of TNVS that are transferring to Grab,” Lizada said during a hearing on Wednesday.

Read complete article here:

LTFRB lowers Grab surge pricing cap amid illegal fare allegation.