Strengthen governance on TNVS industry

The Land Transportation Franchising and Regulatory Board (LTFRB) last October officially approved the increase in fares for all public transportation vehicles amid calls from drivers and operators who have been heavily affected by the jump in local fuel prices.

Since Oct. 6, minimum fare for traditional and modern public utility jeepneys -- the top transportation choice of Filipino commuters -- has been hovering between PHP12 to PHP14, respectively. For every succeeding kilometer of a traditional public utility jeepney (PUJ), fare has increased to PHP1.80 from PHP1.50, while fare rose to PHP2.20 for every succeeding kilometer of modern PUJs from PHP1.80 set previously.

Uniformed base fare for city and provincial buses also rose by PHP2 for the first 5 kilometers, with an additional 35 to 50 centavos for each succeeding kilometer, depending on the kind of bus.

For public utility buses (PUBs), the fare for succeeding kilometers has increased from PHP1.85 to PHP2.25 for ordinary PUBs; from PHP2.20 to PHP2.65 for air-conditioned PUBs; and from PHP1.55 to PHP1.90 for provincial PUBs.

Meanwhile, the flag-down rate of taxis and sedan-type transport network vehicle services (TNVS) has increased to PHP45; to PHP55 for Asian utility vehicle/sport utility vehicle (AUV/SUV) TNVS; and to PHP35 for hatchback-type TNVS.

All these fare increases have gone along with the rise in the prices of basic commodities, all of which are contributing to a higher inflation rate.

Yet, according to news reports, Grab Philippines, the country’s sole TNVS operator, continues to be embroiled in alleged controversial overcharging of its passengers despite its voluntary commitment not to do so.

According to Grab, the price increase was aimed to discourage its passengers from booking short trips.

The LTFRB has already initiated an investigation to look into the fare surcharge and have Grab explain, especially as passengers are blindsided when exactly fare increases happen.

According to lawyer Ariel Inton, president of Lawyers for Commuters Safety and Protection, Grab should explain when a surge fare is implemented given the number of factors involved such as time, distance and fare adjustment, on top of the base fare.

Inton recommended that, if allegations are proven true, the ride-hailing app must be slapped with a PHP5,000 fine for every incident of overcharging.

Clearly, the issue on Grab Philippines’ overcharging issue speaks more of the need for the country to craft more stringent rules and regulations that would govern transportation firms and ensure that the commuting public would be offered the cheapest fare possible.

Recall that the issue on overcharging is no longer new as Grab’s takeover in 2018 of the assets and driver contracts of its sole competitor, Uber Philippines, also resulted in higher ride-hailing fares.

At a recent House Committee hearing, Philippine Competition Commission Division chief for Notification Division Mergers and Acquisition Juan Antonio Arcilla said that the PCC was only waiting for Grab to show compliance regarding its 2018 voluntary commitments. The PCC also back then admitted that the quality of Grab’s services has worsened when it took over Uber.

Transportation system in the Philippines has long been a huge issue due to the poor quality of road network, the lack of railroad system, and most especially, weak governance.

But with more stringent rules, the public can be more ensured of protection from higher fare prices. In addition, only then when we have stricter laws and regulations will we be able to lure more investors to compete with Grab Philippines and level the playing field in the TNVS industry.

Editor’s note: The opinions expressed in the foregoing article are solely the author’s and do not reflect the opinions and beliefs of the Philippine News Agency (PNA) or any other office under the Office of the Press Secretary.