Grab wants LTFRB to put back the P2 per minute travel charge

Grab Philippines has filed a petition before the Land Transportation Franchising and Regulatory Board (LTFRB) to reimpose the P2 per minute travel charge.

“It is most respectfully prayed that the order dated April 19, 2018 rendered by the Honorable Board directing the petitioner to suspend the imposition of P2 per minute charge be set aside as it is contrary to law and applicable jurisprudence,” Grab said.

READ: Grab files petition before LTFRB to reimpose P2 per minute travel charge suspended by the Board in April. | via @Ted_Cordero pic.twitter.com/R7cctZg324

— GMA News (@gmanews) May 25, 2018

On April 19, the LTFRB ordered Grab to stop charging passengers a travel time fee of P2 per minute as the board investigates the claims of PBA party-list Representative Jericho Nograles that it was part of the ride-sharing service firms “illegal” charges.

Grab said that suspending the per-minute fare infringes upon the equal protection clause guaranteed by the Constitution.

Almost all of the newly accredited transport network companies impose per minute charges, the transport network company said, citing a table outlining the fare mechanisms of new ride-sharing firms. It added that even taxis are allowed to impose per minute charges.

“The suspension on the per minute charge imposed by the responsible members of the Board have also given unwarranted benefits, advantage and preference to the other transportation network companies since operators and drivers belonging to the common supply base will necessarily transfer to the other TNCs because the latter are allowed to impose per minute charges,” Grab said.

A motion for reconsideration renders the April 19 order of the LTFRB lifted, despite the board stating it is immediately executory, Grab claimed.

Grab filed a motion for reconsideration on April 20 on grounds that the order was “contrary to law, revised rules of the LTFRB jurisprudence, which would cause grave or irreparable damage not only to the petitioner but more so to the operators and drivers of the accredited transport network vehicles if the same is not rectified.”

The transport network company said it has the authority to formulate its fare structure under Department of Transportation and Communications Order No. 2015-011.

It said the travel charge ensures that drivers are able to earn enough.

The P2-per minute charge is “legal” and 80 percent of the money goes directly to the drivers, with 20 percent as Grab’s commission, Grab Philippines country head Brian Cu said. —VDS, GMA News