LTFRB eyes cap on surge fares

The Land Transportation Franchising and Regulatory Board (LTFRB) is looking to set a cap on surge fares implemented by transport network companies (TNCs) like Uber and Grab by issuing revised guidelines.

LTFRB chairman Martin Delgra said yesterday the pricing scheme is one of the most important and significant issues in the revised guidelines, expected to be released before the holiday rush.

He cited that surge prices of TNCs, or the increase in fares when there is an increase in demand, could reach as high as five times the normal fare.

“One of the proposals is to put up a cap. How are we going to put a cap or something for the formula that we are going to adopt. That is something that we have to look into,” he said in a press briefing.

Delgra said surge prices could become unreasonable as a one-way trip from Taguig City to Quezon City could reach as high as P500.

He added that the LTFRB has the regulatory power to implement the cap as they have a mandate as an agency to regulate all aspects of the public transportation system, including making the fare scheme.

The revised guidelines will also touch on vehicle specifications and the training of their drivers, among other issues.

TNCs have been cooperative and affirmed their commitment to place themselves under regulation, Delgra added.

The LTFRB reviewed existing policies for the issuance of franchises for members of Uber, Grab and U- Hop following protests from different transport groups.