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Grab and Uber Fare
« on: March 28, 2018, 10:10:42 AM »
MANILA -- The Land Transportation Franchising and Regulatory Board (LTFRB) has assured the riding public that it will continue to monitor and regulate the fare structure of transportation network companies (TNCs) in the country amid the recent acquisition of Grab of the Southeast Asian operations of its corporate rival Uber.

LTFRB will continue to conduct its consolidated hearing on the fare hike petitions filed by Uber and Grab on April 3, 2018.

“Rest assured that LTFRB will continue to regulate the fare structure and monitor for the benefit of the riding public,” LTFRB Board Member Aileen Lizada said in a text message to reporters late Monday.

“As regards to trust issues, we have the PCC (Philippine Competition Commission) whose mandate is to check the same. We will be awaiting the manifestation to be filed by Uber in due time to resolve issues pending before the LTFRB,” she added.

LTFRB has earlier said that it is pushing for a unified fare structure for TNCs to further improve their services to passengers.

The ridesharing companies currently use a dynamic pricing scheme on their fares, based on various factors, such as traffic, rider and driver profile, time of day and number of active drivers at a particular time. They also offer incentives and promos as a marketing and business strategy to attract more riders to avail of their services.

Meanwhile, Grab announced Tuesday that it will absorb Uber’s employees that might be displaced due to the acquisition.

“We understand it’s been an emotional and trying day for Uber’s employees in Southeast Asia. On the part of Grab, we are committed to try to find roles for over 500 Uber employees. In addition, we will find roles for their contract staff,” the company said in a statement.

Grab will hold discussions with Uber employees on how they will be absorbed into its system.

Uber’s drivers in the Philippines and Southeast Asia should migrate to Grab’s platform in two weeks as its operations in Southeast Asia will only continue until April 8.

Grab announced Monday that it has taken over Uber’s ridesharing and food delivery businesses in Southeast Asia integrating them into its transportation and financial technology platform. Uber will take 27.5 percent stake in Grab as part of the acquisition.

Last February, the LTFRB has issued a memorandum setting the common supply base for transportation network vehicle services (TNVS) units at 66,750.

The LTFRB welcomes companies that are willing to be accredited as new TNCs.

“All franchises issued by government are generic. With the system in place now, any new TNC is welcome as long as they’re accredited by the LTFRB and that they submit the necessary documents for their respective accreditation,” Lizada said.

There are 59,020 accredited TNVS units for both Uber and Grab whose Certificates of Public Convenience were not processed by the LTFRB due to the moratorium on applications last July 2017. (PNA)

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