Grab imposes price surge limit amid Uber suspension

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Metro Manila (CNN Philippines, August 15) — A Transport Network Company (TNC) offers commuters a respite after the suspension of Uber.

In a briefing this afternoon, Brian Cu, country head of Grab, said, "The surge has been capped at 1.4x."

This number, he said, is below the 2x cap the Land Transportation and Franchise Regulatory Board (LTFRB) required last December.

"The threshold for surge to take effect has been regulated to control fare," Cu said.

Cu said however, there may be more times in a day where a price surge will happen but they were working to make the change in fare given these "unique circumstances."

Cu gave an example saying where before a price surge would happen when demand would be 10 percent above supply, "we're relaxing it so surge will only kick in when demand is maybe 30 percent more than supply."

When asked if it has received expressions of interest from Uber drivers to join Grab, Cu said they have but said no as there is a standing order from the LTFRB that they cannot accredit or activate.

"We've been adhering to that since July 17 when we last activated," Cu said.

Uber suspended, motion for reconsideration denied

TNC Uber's operations were suspended for a month Monday evening as the LTFRB said its July 26 order to stop accepting applications for accreditation of transport network vehicle services (TNVS) and their eventual approval or activation.

Lizada said while Grab followed this order, Uber activated at least three vehicles right the next day.

"This is an open defiance of the order dated 26 July," she said.

READ: LTFRB suspends Uber for 1 month

Uber filed a motion for reconsideration Tuesday.

In a text message to CNN Philippines, Uber said they would ask "for a reconsideration and have the order lifted or the one-month suspension shortened."

READ: Uber files motion for reconsideration vs. LTFRB's 1-month suspension order

Shortly after 6 p.m. Tuesday, the LTFRB released an order denying Uber's motion.