Two of the most popular ride-sharing apps in the Philippines today have put a price cap on surge pricing after the Land Transportation Franchising and Regulatory Board issued a warning over unreasonable surge pricing that users have experienced this holiday season.
Both Uber and Grab has officially released statements on the placement of price caps during surge pricing until next year to ease the financial burden on the riding public.
Uber has officially placed a limit on surge pricing that will remain in effect until Jan. 15 next year. Grab has placed a similar cap that will take effect until Jan. 30 next year. There’s no word on how much the limits are currently.
Uber Philippines general manager Laurence Cua pointed out that the main cause of high price surges are the availability of vehicles, or the lack of them. Since the LTFRB suspended the application of new transport network vehicle services back in July, there’s simply not enough vehicles to go around in the metro, which is one of the primary culprits of the high surge pricing during the holiday season.
“We have seen increasing demand for Uber rides this holiday season, yet vehicle availability remained stagnant. We are optimistic that the LTFRB will soon lift the suspension on new TNVS applications, allowing more people to enjoy safe, reliable and affordable rides in the Philippines,” Cua said.