PCIJ Report: Grab Philippines Consistently Charges Surge Fees

Ride-hailing application Grab Philippines’ algorithm consistently includes surge fees in fare calculations, according to a recent report by the Philippine Center for Investigative Journalism (PCIJ). Despite these fees, customers still face lengthy wait times.

The PCIJ report revealed that the surge multiplier averaged 1.51 times the base fare, with the lowest at 1.19 times and the highest at 1.98 times. These rates are within the limits set by the Land Transportation Franchising and Regulatory Board (LTFRB).

To gather data, PCIJ booked rides on 10 routes across Metro Manila nearly every hour from 6 a.m. to midnight for one week in February. They also used Grab’s Farefeed API every 15 minutes, collecting 1,328 data points from the app and 6,720 from the API for comparison.

“Nearly two in three rides had a ‘None’ surge notice in the API data, while the remaining rides were mostly ‘high surge’ with a few ‘low surge.’ This was inconsistent with what we found on the app where the surge fees were always added,” the report stated.

Despite surge fees, the impact on wait times was minimal, with some routes experiencing hours-long waits and others having shorter wait times. Statistical analyses were inconclusive.

Grab Philippines responded, stating that it follows the LTFRB fare matrix and that surge fees reflect real-time conditions. “The discrepancy in surge notice(s) may result from variations in demand and supply at times and locations. The ‘High,’ ‘Low,’ or ‘None’ indicators are dynamic and can change rapidly,” Grab explained.

Surge fees aim to attract more drivers to high-demand areas to reduce wait times. The Philippine Competition Commission (PCC) previously fined Grab P9 million for failing to refund customers after a reimbursement order.