Grab limits surge pricing charges as Uber faces suspension from LTFRB

Grab assures public that fares will not bloat even with excess demand.

By: Denisse Shawntel Tan | August 19, 2017
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Grab surge pricing

Grab is one of the transport network companies that are operating in the country. (Image: Grab PH)


Transport network company (TNC) Grab will restraint surge charges to 1.4 times the regular rate following the suspension of their competitor Uber.

According to Grab Philippines country head Brian Cu, the surge has been set to prevent excessive charging. Additional fares during surges would be at least PhP20 and at most PhP50.

Cu also said that the indicated numbers are significantly twice below the requirement of the Land Transportation and Franchise Regulatory Board (LTFRB).

Cu further said that price surges are still possible, but they are working to adjust the fares in accordance to circumstances. Cu explained that surge pricing only kicks in if demand is 30% more than supply.

The company recorded a rise of 10 to 15% in bookings in the aftermath of Uber’s suspension. This explains the shortage of rides and results to higher fare prices. However, the surge cap is only temporary and might change to adjust to drivers’ income.

The LTFRB previously gave a one-month suspension notice to Uber after Uber violated LTFRB orders to stop accepting applications for accreditation of transport network vehicles (TNVS).
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About Denisse Shawntel Tan
Denisse Tan is currently a work in progress: she’s an aspiring writer, artist, and fashion designer! She’s trying to figure out how to manage her time in achieving all of her goals while also taking in life as humanly possible. Aside from art, she’s a big fan of the color pink, disco music, Bratz dolls, and Genshin Impact. By age 35, she plans to travel to New York City 🗽.
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