Getting that Uber ride is going to get a lot more expensive soon.
Yesterday, ride-hailing app Uber filed a petition at the Land Transportation Franchising and Regulatory (LTFRB) that seeks to increase its uberX fare per kilometer.
Uber’s fare is currently at PHP5.70 (US$.11) per kilometer but they want to increase it to PHP9 (US$.18) for off-peak hours and PHP12 for peak hours. Their base fare and time charge will remain the same at PHP40 (US$.79) and PHP2 (US$.04) per minute.
According to Uber Philippines, this is to help their drivers maintain the quality of their vehicles and services.
“We are doing this to ensure driver partners earn sustainably. We are committed to investing in the business in the Philippines so riders and drivers continue to get the service they are accustomed to,” it said.
This proposed increase is just the latest change brought by the Tax Reform for Acceleration and Inclusion (TRAIN) Law. While it decreases income tax, the law makes up for it by increasing taxes on coal, sugar-sweetened drinks, and fuel.
Diesel, which used to not be taxed, will now be taxed PHP2.50 (US$.05) per liter. LPG will be taxed PHP1 (US$.02) per liter, and gasoline PHP7 (US$.14), an almost PHP3 (US$.06) increase.
Uber said the increase is also so drivers can comply with requirements under the LTFRB’s Omnibus Franchising Guidelines.
But what exactly does this mean for Uber-dependent Manileños? According to Uber’s website, they compute fares like this: base fare + time + distance rates.
Let’s say you work in the central business district Makai and need to get home to Quezon City during rush hour, it’ll look something like this: PHP40 + (120 mins x PHP2) + (16km x 12) = PHP472.
Your alternative, Grab, might be more expensive too.
Earlier this month, Grab Philippines filed a petition at the LTFRB requesting to increase its per kilometer fare rate from a range of PHP10 (US$.20) to PHP14 (US$.27) to one that starts at PHP11 (US$.22) and can go as high as PHP15 (US$.30). Grab also wants to increase its time charge from PHP2 (US$.04) to PHP2.10 (US$.05).
The LTFRB has not approved either petitions.
In short, it’ll probably be a good idea to plan on setting aside more money for your Grab and Uber budget fund soon.
