LTFRB claims Grab’s P2-per-minute extra charge is unauthorized
The Land Transportation and Regulatory Board (LTFRB) claimed on Tuesday that My Taxi.PH or Grab Philippines’ P2 per minute of travel time additional charge was implemented without its consent.
In a hearing, LTFRB Chair Martin Delgra III pointed out that during the en banc hearing in December 2016, “there was no mention of any travel time rate” by Grab.
But Grab representatives reiterated their earlier justification that the P2 per minute charge was based on the agency’s Department Order (DO) 2015-11.
The DO allowed transportation network companies to set its own fares with the oversight of the LTFRB.
Puwersa ng Bayaning Atleta (PBA) Rep. Jericho Nograles pointed out that this oversight function was exercised by the LTFRB through the approved rates in December 2016.
He said Grab “faithfully followed” this December 2016 order “until they unilaterally added on P2 per minute fare on June 2017 without the consent of the LTFRB.”
At the end of the hearing, Nograles said Delgra directed Grab to present to the Board the following:
1. Disclose and submit when Grab actually started imposing the travel time rate of P2/min;
2. How many trips on a monthly basis Grab charged the riders P2/min; and
3. To explain the algorithm on why the same pick up and point of destination has a charge.
The lawmaker said the next hearing is set on May 29, at 9:00 a.m.
It was Nograles who bared that Grab owes its customers some P1.8 billion for charging the P2 per minute in the past five months alone. The charge was on top of Grab’s P40 flagdown rate and on top of the P10 to P14 per kilometer charge.
“The LTFRB should impose a refund. Otherwise, they are liable for graft,” Nograles said in an earlier interview.
“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 to everyone,” he added. /jpv
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