Grab to Reimpose 2x Surge Rate, New International TNC Could Enter PH Market

Grab Philippines will reimpose the price surge of its PHP10-PHP14 per kilometer fare to 2x on Monday, April 23, 2018, after the Land Transportation Franchising and Regulatory Board (LTFRB) directed the company to lower it to 1.5x on April 11, 2018 "so as to ensure that the fare rate is conducive and acceptable to the number of TNVS (transport network vehicle service) riders that will be transferring to Grab."

That's because in the LTFRB's order, the directive to lower the maximum allowable price surge will be lifted "upon accreditation of new TNCs (transport network companies)." Very recently, on April 18, 2018, the LTFRB issued Certificates of Accreditation valid for two years to Hype Transport Systems, Inc. and Hirna  Mobility Solutions, Inc. while yesterday, April 20, 2018, the agency also officially accredited Golag, Inc. as another TNC, bringing the total number of accredited TNCs in the country to four.

According to LTFRB Board Member Atty. Aileen Lizada though, of the three new TNCs in the market, only Hirna is operational. In addition, Lizada revealed that Hype also has a 2x price surge though she failed to mention what its per-kilometer rate is.

Lizada also shared that Owto, one of the three new TNCs that expressed an interest to operate in the country following Uber Technologies, Inc.'s departure from the country, is still lacking some of the requirements needed by the LTFRB and that Go-Jek, an Indonesian ride-hailing service, is requesting for a meeting with the agency, presumably to make its intention known to enter the Philippines as a TNC. While Go-Jek's business model is similar to the now-defunct Angkas motorcycle-hailing service, it launched Go-Car in April 2016, a ride-sharing service similar to Grab and Uber.

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