Metro Manila (CNN Philippines) — Transport group and party list 1-United Transport Koalisyon (1-UTAK) has filed a petition with the Land Transportation Franchising and Regulatory Board (LTFRB) to review Transport Network Company (TNCs) Uber’s adjusted fares during rush hours.
Vigor Mendoza from 1-UTAK questioned on Wednesday (Septmeber 23) why Uber charged “excessive” fares during traffic jams in Metro Manila last September 8 caused by floods from heavy rains.
He added Uber was allowed to raise prices, which in Uber’s terminology is called surge pricing, depending on traffic conditions.
The app-based service has no tip system, but it implements a price surge at certain hours, whenever there is a shortage of Uber drivers in a given area. Uber earlier defended that the price surge encourages drivers to flock the area.
Related: LTFRB orders GrabCar to remove feature showing passengers’ destination
1-UTAK asked regulators to review Uber’s permit, especially its fare matrix.
“Ang sabi sa batas, kailangan dumaan sa hearing ang ating mga pamasahe. Dahil kahit maganda ang serbisyo, hindi naman pwedeng napakamahal ng charge. Ang sabi ng batas it has to be reasonable and affordable. Eh reasonable nga tapos di naman affordable,” Mendoza said.
The LTFRB said TNCs such as Uber have been allowed by the department to set their own fare matrix, including possible adjustments in case of higher demand for the taxi service.
LTFRB Chairman Winston Ginez earlier said they have yet to issue rules on the app-based transport system.
Regulators gave Uber 10 days to respond to 1-UTAK’s petition.
