LTFRB gives Uber more time to explain fare surcharges

THE LAND Transportation Franchising and Regulatory Board (LTFRB) is giving Uber Philippines (Uber Systems, Inc.) 10 more days to explain the basis of the imposition of surcharges for certain routes outside Metro Manila.

In a hearing on Tuesday, LTFRB gave the ride-sharing service an additional ten days to supplement its position paper on the basis of imposing surcharges.

At the end of December, LTFRB directed Uber to stop imposing a surcharge on routes that will pass through certain tollways and destinations outside Metro Manila.

A surcharge of P80 is imposed when drivers use the Skyway, Magallanes, and C-5 and exit points of Bicutan and Sucat; P100 for exit points of Alabang, Filinvest and Susana Heights, and P60 for areas east of Metro Manila like Antipolo, Rizal.

The surcharges are included in the total fare, which includes the base fare from the fixed rates of P5.57 per kilometer and P2 per minute, and the surge pricing determined by supply and demand at the given time of booking request. The riders will also have to pay the appropriate toll fees.

Uber’s legal counsel Joseph Castillo told the LTFRB during the hearing the surcharges go directly to the drivers and not to Uber, to compensate the drivers for driving to “lowdemand areas.”

He added that unlike in busy areas like the Makati Central Business District where drivers experience around 10-minute intervals between bookings, drivers can take up to 30 minutes to get a booking in these “lowdemand” areas.

LTFRB Chairman Martin A. Delgra III noted Uber did not inform the LTFRB of the said surcharge, which was being implemented since December last year, despite regular meetings with the transport network company (TNC).

“The board was never informed,” Mr. Delgra said.

Mr. Delgra said the surcharge can be comparable with “contracting” done by taxi drivers, a practice criticized by taxi riders and disallowed under LTFRB franchising regulations.

“That is like a taxi driver charging the rider any amount shown in the meter,” he said.

The chairman also told reporters the LTFRB will be further studying the fare structure of Uber, to determine whether it is the TNC, its transport network vehicle service (TNVS) or peer operators who decide on the pricing of Uber fares. —