MANILA, Philippines – In compliance with the Land Transportation Franchising and Regulatory Board (LTFRB) order to stop "unreasonable" price surging, ride-hailing company Grab is putting a cap on its ride rates until January 30.
"To ensure that the riding public will get the best service and rates during this season, Grab is voluntarily placing a cap in compliance with the LTFRB, on our rates starting December 24 to January 30," Grab said in a statement.
This is after the land transport regulator warned transport network companies Uber and Grab they face suspension or cancellation of their accreditation should the "unreasonable surges" in rates persist this holiday season.
The LTFRB said it received several complaints about Uber and Grab surges ranging from P2,000 to P28,000 this holiday season.
"For our passengers, may we request that you double check your pickup and dropoff points before confirming your booking. We are ready to refund rides, upon verification, should they be charged for any incorrect rate caused by a system error," Grab said without disclosing the maximum price for ride rates.
Last 2 days for Uber
On Sunday, December 25, the LTFRB acknowledged Grab's immediate action on the warning and called on Uber to follow suit immediately.
"Calling Uber, your 25 December 2016 statement does not heed LTFRB's directives. Please be reminded that LTFRB is your regulatory body. LTFRB is giving you 48 hours to comply," the land transport regulator said in a statement.
In its statement, Uber did not make any promises about limiting the price surge this holiday season. (READ: Only 1 in 20 trips affected by fare shock – Uber PH)
"Uber shares LTFRB's mission of providing safe, reliable, and affordable transport solutions for the benefit of the riding public. We support policies that require rides to be clear and upfront with consumers about the trip fare," it said in a statement on Sunday.
"We also continue to invest in technological solutions like uberPOOL and uberHOP to help reduce traffic congestion by getting more people into fewer cars while providing more affordable fares," Uber added.
Uber cited the suspension of transport network vehicle service (TNVS) applications since July as a reason for the price surge.
"Since the suspension of TNVS applications in July, we have been in frequent dialogues with the LTFRB to find workable solutions to meet the increasing demand for ridesharing options and avoid price increases brought about by disproportionate supply and demand, longer wait times for riders, or having no available cars on the road," Uber said.
The LTFRB, meanwhile, has asked commuters to report any violation by calling its 24/7 hotline 1342 or sending pictures or screenshots of said incidents to complaint.ltfrb.gov.ph@gmail.com. – Rappler.com