Grab maintains: ‘No overcharging’ of fares on rides

Ride-hailing service Grab maintained there is “no overcharging” of fares on its rides, in the wake of an order from the Land Transportation Franchising and Regulatory Board (LTFRB) penalizing it with a P10 million fine for overcharging customers.

According to Leo Gonzales, Grab’s public affairs manager, the LTFRB order has no basis.

“There is no overcharging since Grab shows fixed and upfront fares before bookings are confirmed,” Gonzales stressed.

”We disagree with the Board’s decision and we will file an appeal to protect the ride-sharing industry in the country.”

The LTFRB earlier said Grab should reimburse its passengers for charging P2-per-minute in their rides.

READ: LTFRB orders Grab to pay P10M for overcharging customers

Gonzales, however, defended Grab’s fare system, citing Department of Transportation (DOTr) order 2015-011 as its basis. Gonzales said the order authorizes transportation network companies to set their own fares.

Gonzales said the LTFRB cannot render this order invalid.

“LTFRB has no authority to declare DOTr order invalid. Only the courts, not LTFRB, can rule on the validity of an order especially one issued by DOTr, which has direct supervision and control over the LTFRB.” he explained.

According to Gonzales, Grab had repeatedly discussed their fare system with the LTFRB.

“We likewise received an email response from the Office of the Chairman [of the LTFRB]. No concerns were raised by the board at that time,” he said.  /muf