RIDE-HAILING app Grab Philippines said on Monday that it will comply with the government’s order to cut surge pricing by 50 percent but warned that the temporary cap could discourage driver-partners from going online and affect ride availability during the holiday rush. In a statement released Monday, Grab said it “respects and accepts” the decision of the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) to impose the temporary reduction, stressing its long-standing partnership with the government. “Grab has always been a partner of the government, and we share its commitment to easing the daily burdens of our kababayan,” the company said. The warning followed the issuance of LTFRB Memorandum Circular (MC) 2019-036, which ordered all accredited transport network companies (TNCs) to slash surge pricing nationwide from Dec. 17, 2025, to Jan. 4, 2026, amid complaints of steep fares during peak hours, bad weather, and periods of high demand. Under the circular, TNCs must reconfigure their fare algorithms so that surge pricing does not exceed the combined per-kilometer and per-minute rates prescribed under MC 2019-036. While acknowledging that the measure could bring short-term relief to commuters, Grab said that surge pricing plays a key role in ensuring that drivers are available during high-demand periods. “It is important to emphasize that surge pricing helps ensure driver availability during peak hours, bad weather, and high-demand periods,” the company said, adding that a sharp reduction could discourage drivers from going online when traffic is heavier and operating costs are higher. Grab noted that holiday travel typically means longer trips, heavier congestion, and increased fuel consumption, conditions that place added strain on drivers. The LTFRB, for its part, said it is considering compensatory adjustments to mitigate potential income losses for drivers, including additional compensation for pickup time and higher time-based charges to reflect holiday traffic conditions. Grab welcomed the agency’s commitment but said implementation should be handled carefully to avoid shifting the burden from commuters to drivers. “We hope to ensure that the policy’s implementation does not unintentionally shift the burden from riders to our drivers, who deserve fair compensation for the extra time, effort, and fuel required to navigate holiday congestion,” the company said. The ride-hailing firm also reiterated its support for long-term solutions, saying that network vehicle services (TNVS) work best as a complement to a reliable mass transportation system rather than a substitute for it. Under the LTFRB directive, TNCs are required to submit compliance reports — including previous and revised fare algorithms and screenshots of capped fares — on or before Dec. 17. Companies that fail to comply will be barred from imposing any surge pricing during the period covered by the order. The LTFRB warned that firms found circumventing the cap face penalties ranging from fines to suspension or cancellation of accreditation.