Uber Philippines files petition to hike fares

UBER PHILIPPINES (Uber Systems, Inc.) has filed a petition before the Land Transportation Franchising and Regulatory Board (LTFRB) to raise fares, citing rising costs for drivers due to the higher excise tax on petroleum products.

On its Web site, the ridesharing company said it is seeking to raise fares per kilometer by around 58% to 110%, depending on demand and time of the day.

In its application, Uber wants to raise the fare per kilometer to P9 (for off-peak hours) and P12 ( for peak hours) for UberX, the basic Uber ride. Uber’s current fare per kilometer is P5.70.

The base fare is retained at P40, as well as time charge at P2 per minute.

“The costs that driver partners have to bear to maintain their vehicles is projected to increase due to several factors, including requirements under the Omnibus Franchising Guidelines ( OFG) to further improve safety and quality of service, increasing fuel prices, and new excise taxes on petroleum,” Uber Philippines said.

In a message to reporters, LTFRB Board Member Aileen Lourdes A. Lizada said they have received the petition filed by Uber Philippines yesterday, Jan. 25.

Rival Grab Philippines (MyTAXI.PH, Inc.) earlier this month filed a petition to increase its P10 to P14 per kilometer charge to P11 to P15 per kilometer, and increase its P2 per minute charge to P2.10 per minute, to compensate Grab drivers for the price increases in fuel and spare parts from higher excise taxes.

Excise taxes under the new tax reform package on petroleum products are estimated to increase by P2.50 per liter for diesel, and P7 per liter for gasoline.

Last week, the LTFRB set its common base supply of transport network company (TNC) vehicles at a cap of 45,000 vehicles in Metro Manila and nearby provinces, 500 for Metro Cebu, and 200 for Pampanga. —