LTFRB surge cut may affect TNVS ride availability

Grab Philippines announced Friday it respects and accepts the government’s order to temporarily slash surge pricing for Transport Network Vehicle Service (TNVS) trips by 50 percent.

However, the company warned that the temporary cap could unintentionally hurt drivers and weaken ride availability during the holiday rush if not implemented carefully.

The company's statement comes after the Land Transportation Franchising and Regulatory Board (LTFRB) issued a memorandum ordering all accredited transport network companies (TNCs) to temporarily cut surge pricing nationwide from 17 December 2025 to 4 January 2026.

“Grab has always been a partner of the government, and we share its commitment to easing the daily burdens of our kababayan [compatriots]. It is in this spirit that we respect and accept the recent DoTr–LTFRB decision to temporarily reduce surge prices by 50 percent,” Grab said in a statement.

The ride-hailing firm stressed that while the cap may ease immediate costs for commuters, it risks shifting the pressure onto drivers who incur longer travel times, heavier traffic, and higher fuel consumption during the holiday season.

“It is important to emphasize that surge pricing helps ensure driver availability during peak hours, bad weather, and high-demand periods,” the company explained. “A significant reduction in surge fees may discourage drivers from going online when they are needed most, ultimately affecting service reliability for commuters.”

The LTFRB circular mandates TNCs to reconfigure their fare algorithms so that surge pricing cannot exceed the combined per-kilometer and per-minute rates set under MC 2019-036.

It added that the move responds to mounting commuter complaints about steep TNVS fares during recent weather disturbances, peak hours, and high-demand periods.

The LTFRB has committed to compensatory adjustments to address possible losses for TNVS drivers, including additional compensation for pickup time and an increase in time-based charges to reflect holiday traffic conditions.

Grab acknowledged the greater demand for TNVS during the holidays but pointed out that these same conditions necessitate additional compensation for its driver-partners.

“We hope to ensure that the policy’s implementation does not unintentionally shift the burden from riders to our drivers, who we believe deserve fair compensation for the extra time, effort, and fuel required to navigate holiday congestion and safely serve the riding public,” said the ride-hailing firm.

Grab reiterated its willingness to fully cooperate with the LTFRB’s review of the TNVS fare structures, remaining committed to “solutions that protect passengers while also safeguarding the livelihood of our drivers.”

Under the circular, TNCs must submit detailed compliance reports—including old and revised fare algorithms and screenshots showing the new capped fares—on or before 17 December 2025.

Those that fail to comply cannot impose any surge pricing during the effectivity of the order. Companies found circumventing the cap face sanctions including fines, suspension, or cancellation of accreditation.