The Land Transportation Franchise and Regulatory Board ordered Grab Philippines to lower its surge rate from 2x to 1.5x on Wednesday.
According to reports, the order was decided after the LTFRB held a special meeting on Grab’s Transport Network Company Uber.
Meanwhile, Grab reportedly defended their side on demanding a high fare for it was caused by the lack of Grab drivers and a high number of booking requests. Grab added that although the supply of drivers increased due to Uber’s non-operation, the booking requests went up in sync.
Nevertheless, Grab expressed their acknowledgment in complying LTFRB’s order to lower the surge rate.
“We understand the justification for it. This is in fact a critical time. We believe that as soon as the new players come in, the board will craft study again but of course we would comply for the downgrading of cap from 2.0 to 1.5,” Grab’s spokesperson, Leo Gonzalez said in an interview.
Grab will comply in downgrading their surge cap until a new player comes in. Based on reports, LTFRB is still in the process of evaluating the application of other Transport Network Company players who want to enter the market including OWTO, HYPE, and Lag-go.