LTFRB to review Grab’s P50 cancellation fee

The Land Transportation Franchising and Regulatory Board (LTFRB) will review Grab’s P50 penalty for passengers who cancel rides.

LTFRB chair Martin Delgra said Grab informed the board about its cancellation fee, “but not as to the details.”

The board will still review the ride-hailing giant’s new fare policy, he added.

Grab president Brian Cu announced the imposition of the cancellation fee early this week  to “create a better ride-hailing ecosystem where both passengers and drivers practice the responsible use of the platform.”

Under the new policy, GrabCar passengers who terminate a ride 5 minutes after getting a driver, or fail to show up at their designated pickup points within 5 minutes after the driver’s arrival, will be charged P50.

The waiting period is shorter for those who book a GrabShare ride: 3 minutes.

The fee applies the next time the passenger pays in cash.

Passenger accounts can also be suspended for 24 hours if they cancel a ride twice within an hour, thrice in a day, or five times in a week.

The fees do not apply if the driver cancels within 5 minutes; if the driver is not moving toward the pickup point; or if they take 15 minutes or longer than the estimated time of arrival.

Wrongly charged fees may be refunded within 48 hours.

Drivers who unreasonably cancel passenger bookings or are selective of their destinations can also be locked out of the platform if they excessively ignore or cancel requests.

Their riders will be compensated with 30 reward points.

Nearly all transport network companies—Grab, Hype, and GoLag, among others—now  charge passengers a cancellation fee.