LTFRB orders Grab to explain P2 per minute travel time

The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a show cause order against MY TAXI.PH Inc., the operator of Grab Philippines, to explain why its accreditation should not be canceled for supposedly overcharging its passengers at the rate of P2 per minute of travel time.

The board directed Grab to explain in writing within five days after receiving the order why its Certificate of Accreditation as a Transportation Network Company should not be “suspended or cancelled” for “allegedly charging P2 per minute of travel time without authority from the Board.”
 

LOOK: LTFRB issues show cause order on Grab Philippines directing the company to explain why its accreditation should not be cancelled for supposedly overcharging P2 per minute of travel time in its fair. @gmanews pic.twitter.com/qUVfY8CCHw

— Erwin Colcol (@erwincolcol) April 12, 2018

The P2 per minute is on top of the P40 flagdown rate and P10-P14 per kilometer Grab is charging its passengers.

Aside from a written explanation, the LTFRB ordered Grab to appear before a hearing on the case at 9 a.m. on Tuesday, April 17.

In issuing the order, the LTFRB noted a GMA News Online report quoting PBA party-list Representative Jericho Nograles as saying that Grab should refund its customers P1.8 billion in alleged overcharged fares.

“Grab charges P2 per minute illegally. They’re not allowed to charge P2 per minute. The LTFRB has not allowed them to charge P2 per minute but they have charged P2 per minute on everyone,” Nograles said.

For the past five months, Grab overcharged its customers an estimated P1.8 billion, the lawmaker claimed. “The LTFRB should impose a refund. Otherwise, they are liable for graft,” he said.

Grab Public Affairs head Leo Gonzales said the P2-per minute charge is not hidden but a part of the overall fare system.

“Department Order 2015-011 allowed TNCs to set ... own fares with the oversight of the LTFRB. In June 2017, Grab, upon review of its pricing structure, initiated per minute pricing of P2. This was integrated to the existing per km charges and is not added to the upfront fares,” he said.

“We would like to assure the public that Grab has always been forthcoming and transparent with regard to its fares,” Gonzales noted.

If Grab fails to submit a written explanation within five days after receiving the order and appear before the hearing, then the case would be decided based only on records of the board, LTFRB said.

Aside from refunding the overcharged fares, Nograles also said Grab should be slapped with fines for various business malpractices, including non-issuance of a detailed official receipt. —VDS, GMA News