MANILA, Philippines – The Department of Trade and Industry has asked delivery service app Lalamove to explain why it is charging a “December fee” of up to P100 for parcel deliveries this holiday season.

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The December fee is slapped on top of the base price and high demand surcharge, making deliveries more expensive.

Rappler observed that a two-kilometer delivery through a Sedan could cost over P463 due to the various fees.

For motorcycle deliveries, Rappler observed a P40 December fee.

In a text message to Rappler, Trade Undersecretary Ruth Castelo said that such charges were not allowed.

“That should not happen…. It has to be explained what the December fee is for,” Castelo said.

In an email, Lalamove said that the extra fees were “common” in delivery platforms. It said the fee was temporary and implemented to ensure that delivery orders were fulfilled.

Similar apps like Grab and Transportify only have a demand surcharge adjustment, making Lalamove deliveries more expensive than competitors.

“During the festive seasons where demand for delivery surges, temporary fees are implemented for drivers, who are independent contractors and work on their own time, to be more willing and able to accept the orders being offered via the platform. This is to ensure users’ delivery orders are fulfilled, and to ensure partner drivers are compensated during the peak season,” Lalamove told Rappler.

Lalamove said that the additional charges were disclosed to the customer prior to booking.

“Similarly, this also allows our partner driver to assess whether he wants to accept such an order at that fees. Drivers are able to take home the combined amount of base fare and surcharges net of commission,” the company said. – Rappler.com