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LTFRB’s surge may affect ride availability, says Grab
Grab Philippines has expressed concerns that the LTFRB's decision to reduce surge fees for TNVS by 50% could negatively impact driver earnings and the availability of rides, despite respecting the government's objective to alleviate commuter costs.
The ride-hailing company stated that surge pricing plays a crucial role in incentivizing drivers to operate during peak hours, adverse weather conditions, and periods of high demand.
Grab warned that a substantial cut in surge fees might discourage drivers from being online when they are most needed, potentially leading to decreased service reliability for passengers.
The company acknowledged the LTFRB's aim to ease the financial burden on commuters, especially during the holiday season, but highlighted the potential financial strain on drivers who face increased travel times, traffic congestion, and fuel costs.
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The LTFRB has temporarily reduced the surge pricing cap for Transport Network Vehicle Services (TNVS) from December 17, 2025, to January 4, 2026, in response to commuter complaints about high fares during peak hours.
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The Department of Transportation (DOTr) is ordering the Land Transportation Franchising and Regulatory Board (LTFRB) to penalize taxi and Transport Network Vehicle Service (TNVS) drivers who frequently cancel passenger bookings, especially during the holiday season.
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