In accordance with the Memorandum Circular 2018-019 released by the Land Transportation Franchising and Regulatory Board last September 5, 2018, Grab, along with other Transport Network Companies, are authorized to implement the Php 2 per minute travel time fare component effective today, September 21, 2018.
In our previous dialogues with our driver-partners over the last few months, they actively shared that it was no longer economically feasible to sustain their TNVS operations. The suspension of the P2 per minute travel time fare component, coupled with the worsening traffic condition, high cost of fuel and other expenses such as car maintenance and amortization, have collectively forced driver-partners to go offline. This further contributed to the shortage of the TNVS supply in Metro Manila.
We thank the LTFRB for hearing the plea of our driver-partners and reinstating the P2 per minute travel time fare component. We hope that this will encourage our driver-partners to go back online and continue bringing more passengers home, especially this upcoming Christmas season. Grab will continue to supplement this with other opportunities and benefits that will improve driver productivity.
To help our passengers cope with the adjustment of their daily transportation budget, we will temporarily lower our surge pricing to 1.6x instead of 2.0x. We are hopeful that the waiting time and booking experience will improve as we get more drivers back into the platform to serve you.
In the spirit of transparency, our trip receipts will likewise be updated over the next few days to reflect an accurate breakdown of fares, inclusive of the time component. This update may take up to two days and may prevent the breakdown from being visible in the interim.
Currently, Grab’s fare structure is one of the lowest amongst other TNCs and still cheaper compared to the newly calibrated Taxi fare. We hope that the reinstatement of the P2 per minute travel time component across all TNCs will be the first step in standardizing TNVS fares. We will continue to work closely with our regulators and policy makers to ensure transparency in the ride-sharing industry.
Leo Gonzales, Grab Philippines Public Affairs Head