Grab reimposes surge charges today

MANILA, Philippines — Ridesharing company Grab is set to reimpose its 2x maximum surge charge today. 

This comes as the Land Transportation Franchising and Regulatory Board (LTFRB) allowed Grab to reimpose the 2x surge cap for its trips following the accreditation of new Transport Network Companies (TNCs).

In an order signed last Thursday, the LTFRB lifted the 1.5x cap on the surge charges or fees that can be imposed by the ridesharing company during peak hours when demand is higher than supply.

The LTFRB last week approved the accreditation of three new TNCs, namely the GoLag Inc., taxi-hailing application Hirna Mobility Solutions Inc. and ridesharing company Hype Transport Systems Inc.

The lower surge price was initially ordered by the board during a special hearing on Grab’s purchase of Uber earlier this month.

Grab admitted that surge has been felt at longer times since Uber exited the country last Monday.

Still, the company vowed to comply with LTFRB’s order to suspend the imposition of a P2 per minute charge pending review of its legality, which was questioned by a lawmaker. 

Grab maintained that the charge was legal and for the benefit of their partner drivers. 

Brian Cu, Grab country manager, said their bookings have seen a 70 percent increase but their supply of Transport Network Vehicle Service (TNVS) partners have not kept up. 

Cu said the number of their vehicles has only gone up by about 40 percent. 

As this developed, Camarines Sur Rep. LRay Villafuerte maintained that there should be no monopoly in TNVS. 

“(Grab’s) virtual monopoly quickly reared an ugly head in the form of these anti-competition practices of abrupt ride cancellations and prohibitive fare price surges,” Villafuerte pointed out. 

“We cannot allow Grab to continue allowing its abusive driver-partners to operate, or to overcharge passengers just because we are left with no choice but to tolerate Grab’s virtual monopoly that has led to a fast deteriorating quality of service,” he said. 

The administration lawmaker claimed he has repeatedly heard mounting “complaints from customers about exorbitant fares and the nasty practice of the company’s driver-partners of canceling rides or refusing bookings by passengers.” 

Villafuerte said Grab customers also informed him that the company had taken out a link in its app that allowed them to contact Grab’s support via email to complain about drivers who abruptly cancel bookings.

“I was told that these drivers cancel bookings without even the courtesy of informing them about the cancellation. Many of them have complained that they were made to wait for a long time by drivers, only to have their rides cancelled,” he revealed. 

“This is highly unprofessional behavior that Grab should not tolerate,” Villafuerte said. 

He said Grab should adopt the defunct Uber’s practice of using customer ratings of drivers to determine who should be prioritized in getting passenger bookings, suspending the abusive ones who cancel rides repeatedly or refuse to accept bookings. 

Drivers should not find out the destinations of their booked rides until after they have picked up their passengers, he said. – With Delon Porcalla