MANILA -- Ridesharing firm Grab Philippines will enforce a PHP2- per minute charge on travel time from place of origin to destination starting Friday.
This is in compliance with the directive of the Land Transportation Franchising and Regulatory Board (LTFRB) earlier this month, which allows transportation network companies (TNCs) to impose the per minute charge.
Grab said that the imposition of the per minute charge will encourage drivers of its transportation network vehicle services (TNVS) units to have more trips, addressing the demand for rides of its passengers.
“We thank the LTFRB for hearing the plea of our driver-partners and reinstating the PHP2 per minute travel time fare component. We hope that this will encourage our driver-partners to go back online and continue bringing more passengers home, especially this upcoming Christmas season. Grab will continue to supplement this with other opportunities and benefits that will improve driver productivity,” the company said in a statement.
Grab likewise announced that it will reduce its surge rates from 2x to 1.6x to help passengers adjust their transportation costs.
The new surge cap takes effect this Friday.
“There is no definite timeline (on its duration) but we will observe the trends within the next two weeks. The intent is to help passengers and allow adjustment period,” according to Grab.
“We are hopeful that the waiting time and booking experience will improve as we get more drivers back into the platform to serve you,” it added.
The company will be updating the breakdown of its fare rates, inclusive of the per minute component, within the next few days.
LTFRB issued Memorandum Circular No. 2018-19 last Sept.5, setting a uniform fare structure on TNVS units of ridesharing companies.
The Board also directed the TNCs to provide a breakdown of their fares, including flagdown rate, per kilometer rate, travel time rate and surge price on their electronic receipts.
Ride-hailing firms earlier called on LTFRB to allow them to impose per-minute charges to provide sustainable income to their drivers. (PNA)
