In response to LTRFB’s warning regarding unreasonable price surge, Uber Philippines announced that it will temporarily implemented an artificial limit on their price surge until January 15, 2017.

Uber price surge is a system that the company implements where the Uber fare rates automatically increase, when the riders demand is higher than the available Uber drivers. Uber’s price surge ensures reliability and availability for those who agree to pay a bit more. Riders are notified by the app when there is a surge pricing and when it goes down again.

Laurence Cua, General Manager for Uber Philippine also explained that the a caveat for the said price cap is that Uber’s service level will drop from 80% to 50%.

“Under normal circumstances, eight out of ten riders can reliably get a car with a tap of a button. However, that number has already dropped to five out of ten after the artificial cap,” said Cua. “We are monitoring this closely because we also have an obligation to provide reliable rides to our riders, and we want to ensure that drivers are properly motivated, and not coerced, to provide services during these special seasons.”

Uber unlike the regular taxis is a premium service, which is the reason why Cua is concern about their service level. You can read Uber Philippines full announcement here.

Image from Uber