MANILA — Ride-hailing firm Grab on Wednesday said most of the surge fees it imposes go to drivers. 

Grab Philippines head of public affairs Gio Tingson said fares  go up when there are more people booking a ride than there are drivers available.  

“Pinayagan po tayo ng LTFRB (Land Transportation Franchising and Regulatory Board) na gawin po ito, may mga memorandum circular po na lumabas since pre-pandemic na gawin ang surge at a certain cap. Ito ay para hikayatin po ang ating mga driver,” Tingson told TeleRadyo Serbisyo. 

“On the average, more than 80 percent ng kinikita po sa surge ay napupunta po sa ating mga drivers. Kasi po ito yung paraan natin para hikayatin po sila na talagang bumiyahe kahit na po di ba hassle talaga yung rush hour,” he added. 

The surge fee could be up to double the cost per kilometer and per minute. 

Surge all day? Grab PH explains surge pricing

The LTFRB said Tuesday it eyed lowering the surge rates of ride-hailing services by as much as 50 percent.

LTFRB eyes reducing ride-hailing surge fee

“Kung ano po ang iatas sa amin ng LTFRB, andito po kami para sumunod,” Tingson said. 

“Patuloy po yung teknolohiya pinabubuti natin, yung pag-aaral ng demand pinabubutin natin para serbisyuhan ang ating riding partners at of course, ang ating riding public,” he added.  

To save on fares, he added that passengers could opt for group rides or go for the saver option with longer waiting times. 

The LTFRB recently added 5,000 slots for ride-hailing services in Metro Manila to accommodate the expected increase in demand this holiday season. LTFRB Chairperson Teofilo Guadiz III said he hoped this would help cut down surge rates during rush hour.