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Uber, Grab Surge Pricing Might Soon Be A Thing Of The Past

No to unreasonable fares
by Andrei Medina | Dec 27, 2016
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If you’ve ever felt ripped off by the surge pricing of Uber and Grab services then this will come as good news for you.

Quezon City Rep. Winston Castelo has filed a bill in Congress that seeks to protect commuters from the surge pricing of transport network service providers (TNS), GMA News Online reports.

“While we thought that these TNS providers serve as a better mode of public transportation for our people, they appear to be just the same with or worse than erring taxi cabs that charge passengers more than what the meter says,” he said.

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According to Castelo, House Bill No. 4669 or the No Price Surge Act will ensure that the TNS industry will not overcharge desperate commuters especially during the rush hour.

Usually, surge pricing is activated by TNS systems when it detects a higher demand for the service in comparison to their readily available units.

This results in fares that can reach up to three times more of what you would normally pay for a regular trip.


Castelo also said the measure also aims to regulate the amount of cars under each TNS company’s fleet in order to reduce the volume of vehicles plying the streets of Metro Manila.

The filing of this bill comes after the Land Transportation Franchising and Regulatory Board (LTFRB) received complaints from TNS patrons claiming to have been charged up to P28,000.

The LTFRB, for its part, warned both Uber and Grab that their respective franchise accreditations can be revoked if they fail to address these kinds of complaints.

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Both TNS companies in turn have acknowledged the LTFRB’s reminder with Grab placing a cap on its surge pricing rates for the holidays.


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