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Uber Blames LTFRB Surge Price Cap for Less Vehicle Supply

Less Ubers on the Road Due to Surge Price Cap

A few weeks ago the LTFRB put a price cap on the “surge” fair being implemented by Uber and Grab here in the Philippines. While a lot of people rejoiced over this, what a lot of us didn’t expect that it would affect their services in a big way. There are a lot of complaints on Twitter of people not being able to book Uber or Grab and the reason being shown on the app is that the amount of vehicles on the road is less due to the price cap implemented by the LTFRB.

Personally I find this alarming because Uber, for me, is a great emergency option to get a car during rush hour. I know there is a premium to pay but at least I can avoid long lines and pointless hours waiting for rude cab drivers for pick-up.

A quick search of “Walang Uber” on Twitter

Hopefully this normalizes this January and that this is just an issue due to the holiday rush. It would be great if Uber Philippines were to release data pre and post surge on the decreased number of Ubers and expired request on the road due to the Surge Price Cap policy.

What do you guys think? It looks like it’s a Catch 22 situation (damned if you do, damned if you don’t).

Colin Chan

Colin is Unbox's resident Nokia Lumia fanboy. He's inept in any other OS but he's trying his best to learn...so go easy on him. What he lacks in technical know-how he makes up with a wealth of cultural knowledge--hence he writes (or should be writing) Movie Reviews and other things like men's fashion and whatnot.

17 Comments

  1. Thw cap law is disrupting the 1# law of economy, Supply and Demand. If you dont like the price, find an alternate. Wish i can say that to our ISP’s…

    1. The same logic with your ISP applies here. Gusto mo man maghanap ng ibang transpo wala rin namang better alternative.

        1. As a somewhat regular Uber and Grab user, my first option is always to ride a bus or a jeepney. Then get a cab if it’s too difficult to get on a bus or jeepney due to rush hour.

          My last resort is always Grab or Uber unless when running late.

          Yes there are alternatives but sometimes, the only option is Uber and Grab.

          Also, based on my experience during Christmas and New Year, there was almost ZERO buses and jeepneys on the road especially along Ayala Avenue.

          I believe the real reason for what seemed like a shortage of Grab and Uber cars during the holidays is really due to the increased demand caused by the lack of other alternatives. As mentioned, fewer jeepneys and buses were available.

          Try working on a holiday, especially Christmas and New Year and see if it’s really that easy to access those alternatives.

    2. The decision released by LTFRB was meant to protect consumers and para hindi mang-abuso ang mga companies. Are you saying you are ok to pay 10k fare during the holiday season? Maybe you are or can but you should also think about your fellowmen. Not everyone can pay exorbitant fees. A compromise has to be made. Maybe raising the cap a bit might help. But no cap would be unfair to consumers.

      1. As i said, find another alternative like take the bus, jeepney, regular taxis or start walking. No one is forcing you to pay overpriced services unless you are that desperate. You shouldnt pay something you cant afford to keep especially when alternates are available.

  2. Uber is just conditioning the minds of the public that the reason for the lack of available cars is due to the price capping. The main reason for the lack of cars available to receive passengers is high demand & congestion on the road. We all know that people are everywhere during the holidays & this creates the huge demand for the service. Not all available cars can be at a high demand location immediately due to the horrible traffic during the holidays.

  3. Never mind him, he’s either too broke to avail uber or grab so he doesn’t feel us who actually do. Or maybe he’s got a car which make him feel superior than Uber users, but he forgot he needs to pay for amortization, gas, maintenance, parking, etc. He can’t be so rich because he’s spending so much time trolling.

  4. parang di ko naman ramdam yung rush hour na sinasabi. ay nakabisikleta nga pala ako. pakulo lang yan.

  5. mas maganda siguro kung ang regulated lang ay yung mga taxi at basic cars. yung mga premium rides pwedeng hindi na or mas mataas ang cap para may option ang mga commuters. anyway tama lang na iregulate sila para maiwasan ang pang-aabuso.

    1. I agree with regulating it but limiting it to 2 isnt a good way.. remember this is prem service.. this is not just a taxi or bus..

  6. LTFRB is just doing its job. Don’t blame them. They are there to protect the riding public. Complaints flooded their office and naturally, they will act on the these complaints. And what will be a better solution for the prevailing problem if not capping the fees? I ask this question to people who think they know better than LTFRB and the people who complain because they value their hard earned cash. If you’re filthy rich and can afford to pay at least PHP2,000 a day, 365 days a year for transportation, that question is not for you. Why? because you have so many and much better rides than most of us.

  7. Uber is a premium service. there are other options for transpo..

    The thing that you are not getting we are not forcing the public to use UBER if they cannot.. they can ride taxi or jeep or bus.. its only for people who can afford the fare in exchange of convenience..

    It’s like you can go for Shangri-La hotel or just check-in to Sogo hotel. very very simple..

    Im not rich, in fact i have debts as well.. but I know the value of UBER..

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