Back to normal?
Grab Philippines’ surge cap of 2x has been restored by the Land Transportation Franchising and Regulatory Board (LTFRB) on Friday.
The LTFRB earlier lowered Grab’s surge cap from 2x to 1.5x, but decided to restore the cap with the accreditation on new transport network companies.
The LTFRB said it decided to grant Grab’s motion to set aside the previous order on April 11, 2018 for the company to lower the maximum allowable price surge on its current fare of P10 to P14 per kilometer.
The surge cap was lowered to 1.5x from 2x temporarily as LTFRB was still processing the application of new transport network companies.
“Considering that when the Board has accredited a new transport network company, the premise on the order moved to be vacated or set aside has become non-existent,” the LTFRB said.
On Wednesday, the LTFRB issued a certificate of accreditation to Hype Transport Systems Inc. as transport the country’s network company.
According to LTFRB Board Member Aileen Lizada, the order will be implemented on Monday as relayed by Grab.
“I got a word from Grab, Monday pa nila ibabalik,” Lizada said.
Meanwhile, Grab filed on Friday a motion for reconsideration against the LTFRB to force the agency to restore the P2 peso per minute travel charge it earlier imposed.
Grab argued that the LTFRB order issued on April 19 was “contrary to the law” and “the revised rules and of procedure.”
On Wednesday, the LTFRB ordered Grab to cancel the travel charge while the fare structure is still under review.
But Grab contends that the order “would cause grave or irreparable damage not only to the respondent but more so to the operators and drivers of the accredited transport network vehicles if the same is not rectified.”
It earlier a cited the Department of Transportation and Communications’ (DOTC) Department Order 2015-011 which it claimed that TNCs has the right to impose a P2 per minute travel time charge.
Earlier, PBA party-list Representative Jericho Nograles claimed that the travel charge was part of “illegal” charges of the TNC, prompting the LTFRB to issue an order and a review of Grab’s fare structure.
Still, Grab country head Brian Cu said the company has stopped implementing the P2 per minute travel charge following the LTFRB order.
The order takes effect at midnight, April 20.
Meanwhile, the LTFRB said it would grant “generic” franchises for 65,000 drivers of transport network vehicles that may be used for any ride-hailing company.
“Unlike before, ang mga prangkisa generic na. Itong 65,000 may be accredited with one or any or all TNCs (transport network company),” Aileen Lizada, LTFRB board member, said in a radio interview.
Before the new policy, drivers who want to be a part of a ride-hailing firm will first have to secure accreditation from companies before applying for permits at the LTFRB.
But the LTFRB decided to place a cap on the number of Transport Vehicle Network Service (TNVS) drivers to avoid too many cars on the road.
“We level the playing field so kahit saan, puwede magpa-accredit. We do not like ‘yung nangyari before na nag-aaccredit sila tapos diretso activate na,” Lizada said.
But drivers who will be blacklisted by a ride-hailing firm will be prohibited from operating under other transport network companies, she added.
The LTFRB is also processing land reviewing the applications of 3 more TNCs after Grab acquired rival firm Uber, Lizada said.
“We will see how they will play off and present better services to the riding public,” she said.