MANILA — The Land Transportation Franchising and Regulatory Board (LTFRB) is considering an increase in taxi fares to enable operators to compete with ridesharing companies.
LTFRB board member and spokesperson Aileen Lizada said the proposed taxi fare rates will now be based on the distance and time travelled.
“For the new fare structure, there will still be a flagdown rate of PHP40. We will now be basing it on a per kilometer basis. There will be an amount for running time, no longer for waiting time,” Lizada explained in a text message to reporters.
The current taxi fare is set at PHP40 at flagdown and the first 500 meters, and PHP3.50 for every 300 meters and for two-minute waiting time.
Taxi drivers and operators are seeking a PHP2 increase in the rate for every succeeding kilometer in the distance travelled by taxi units.
If the adjustment is granted, the running fare and waiting time will increase to PHP5.50 from PHP3.50 while the flagdown rate remains at PHP40.
The LTFRB official said the board is expected to come up with a decision before the end of the month.
LTFRB Chairman Martin Delgra III earlier stated there is a need to increase the fare of taxis to make them at par with transportation network companies, such as Uber and Grab, and motivate drivers to improve their services.
The taxi fare was last adjusted eight years ago.
Uber and Grab use a dynamic pricing scheme wherein fares change based on the demand of passengers at a certain time, especially during rush hours, or conditions, such as heavy traffic and inclement weather. | PNA
