MANILA, Philippines — Ride-hailing giant Grab has launched a limited but cheaper type of ride option for budget-conscious passengers.
The service, which was launched last week, also welcomed back to the Grab platform thousands of hatchback drivers who were removed en masse by the transport network company in June at the behest of transport regulators.
GrabCar Hatchback allows passengers to book the compact vehicles whose trunks occupy the same area as the passenger seat. A maximum of three passengers can ride at the same time.
The hatchback service would be slightly cheaper than the GrabCar option. According to the approved fare matrix of the Land Transportation Franchising and Regulatory Board (LTFRB), the base fare for hatchbacks would be P30 (P10 less than GrabCar).
Selected areas only
Their routes, however, would currently be limited to the central business districts of Makati, Taguig and Pasig.
The LTFRB earlier maintained that hatchbacks were not safe for public transport, prompting displaced drivers to file a complaint before the Anti-Red Tape Authority over the board’s “irregular” application process for transport network vehicle services (TNVS).
In August, the Department of Transportation signed Department Order No. 2019-13, permanently allowing hatchbacks and subcompact units to be used as TNVS units.