Transport group: Uber, GrabCar rates too high

MANILA, Philippines — A transport group on Monday filed a petition at the Land Transportation Franchising and Regulatory Board (LTFRB) seeking to cut fares of app-based transport services such as Uber and GrabCar.

Vigor Mendoza, chairman of 1-UTAK, filed the petition complaining of what the group calls high rates of the transport network vehicle services (TNVS) following the recent drop in diesel prices.

"The price of fuel has dropped drastically lowering the cost of operations of Uber. Uber vehicles and drivers also do not undergo and appear not to be covered by the same stringent requirements mandated for other PUVs (public utility vehicles) like vehicle markings, professional driver's license, calibration of meters or determines the fares hence their cost of operations are lower than taxis and other PUVs," Mendoza’s petition read.

Mendoza also called for transportation network companies and their accredited TNVS to immediately reduce their base price by 50 percent.

He also insisted that the fares of Uber and other TNVS companies should be patterned after taxi meters.

"The vehicles are used for multiple reasons and are not dedicated to public use. Hence, they may be pulled out from public service to serve their other private uses, unlike other PUVs whose sole use and source of income come from their operators as vehicles should not be totally factored in determining reasonable fares," it added.

Rates for one-way trips by Uber and GrabCar vehicles are not fixed, surging usually on periods with high customer demand such as the evening rush hour in the metro. Rates at peak hours can increase up to P500 for a six-kilometer distance passing through EDSA or C5 where traffic is usually heavy or at a standstill.

LTFRB Board Member Ariel Inton said, meanwhile, that the agency is still reviewing if there is a need to exercise its oversight powers to regulate TNVS fares.

The board is set to hear the petition to lower TNVS fares next month. — Camille Diola with reports from Philippine News Agency