MANILA -- The Land Transportation Franchising and Regulatory Board (LTFRB) has added 5,000 more slots for ride-hailing services in Metro Manila to accommodate the expected increase in demand this holiday season.

LTFRB Chairperson Teofilo Guadiz III said these slots have been equally distributed among the different Transport Network Vehicle Service (TNVS) firms operating in the National Capital Region.

“This Christmas, in response to the request ng not only Grab but all the other 19 TNVS companies, we have approved an additional 5,000 slots,” he said.

Grab eyes putting 10,000 more cars on the road in leadup to Christmas season

The LTFRB added that it will also be accepting applications for special permits for public utility vehicles like buses starting December 15. The special permits would be valid from December 20, 2024 to January 4, 2025.

Grab Philippines expressed gratitude to the LTFRB for its support in addressing the demand and supply imbalance, but noted that the process of onboarding new drivers takes about three to five months.

Grab said it has already been adding more drivers since August, which was when the LTFRB last released TNVS slots, in an effort to make its service more reliable for passengers especially this December.

“What we find kasi is on the second and third week (of December), demand surges 45 percent so it’s this very, very short period where demand is at its peak,” said Grab Philippines Country Manager Ronald Roda.

Roda encouraged the public to take advantage of Grab’s recently launched Group Rides feature, which not only maximizes the utilization of its fleet through the carpooling model, but also efficiently lowers down fares by allowing groups of four to share their ride’s base fare.

“The name of the game is not so much the number of cars but how many people we can put in a car given the situation on Christmas,” he said.

SURGE PRICING

A network of digital advocates is urging the LTFRB to impose strict rules regarding holiday surge fees, or the additional cost computed by an algorithm to get more cars on the road.

Surge all day? Grab PH explains surge pricing

"Every year, TNVS passengers have been complaining of fares doubling, tripling, and in some instances even higher than that, during the holiday rush, when the service is much more needed. This should stop now and LTFRB should do its job to protect the commuters,” said Digital Pinoys national campaigner Ronald Gustilo in a statement.

It also cited a study by the Philippine Center for Investigative Journalism which shows tbat GrabCar rides always included surge fees yet data also suggested that customers still often endure lengthy wait times even when fares were high.

But Grab defended what it described as its dynamic pricing scheme as a way to provide viable earnings for its drivers in spite of the holiday-induced traffic congestion.

It also cited its own historical data showing that drivers, on the average, will need to spend 14 percent more time for the same trip distance for most of the December holiday rush.

“We also need to look out for the drivers. We need to make sure that the fares are also fair for them so that they keep driving. It’s a two-sided platform— there’s the passenger and the driver and we need to be able to serve both for the holidays,” said Roda.

Roda also insisted that they always stay within the framework that the regulator sets for pricing.

“So whatever that fare matrix is, what is allowed, for sure, we will be within that,” he said.

The LTFRB also assured the riding public that there is a mechanism in place to check on the surge pricing of TNVS apps like Grab.

“We also have a system in the office the monitors the algorithm of these TNVS. And we have field agents who would casually go into these TNVS, sasakay yan, to monitor if the TNVS really has the algorithm in compliance with the directive of LTFRB,” said Guadiz.

Guadiz also acknowledged the different factors that could cause such price surges.

“There are instances na kahit walang traffic, pag kokonti yung TNVS available, nag-iispike talaga yan. And of course the main contributor here is traffic. Pag nagtraffic na, nag-aadjust kaagad yung algorithm ng TNVS, nagtataas yung presyo,” he said.

Meanwhile, in a bid to still keep its services accessible, Grab said it has expanded the coverage of its GrabUnlimited subscription service, which now includes an everyday 8 percent discount on GrabCar rides.

It has also launched GrabCar Saver which is cheaper than a standard GrabCar ride.