LTFRB: Grab PH may face franchise suspension over discount issue

MANILA, Philippines — Grab Philippines may face franchise suspension should evidence prove that it let drivers shoulder the 20 percent discount for persons with disability (PWDs), senior citizens, and students, the Land Transportation Franchising and Regulatory Board (LTFRB) said on Tuesday.

Speaking at the Senate panel on public services’ hearing, LTFRB Chairperson Teofilo Guadiz III said the agency issued a memorandum that prohibits transportation network companies (TNCs) from letting drivers shoulder the discount.

“We have an existing memorandum circular issued by the LTFRB and it gets very explicit on it. Before we award them the franchise, it’s already there – the 20 percent discount shall be shouldered by the TNC regardless of whether it’s Grab or any other TNC. That’s the law we have been implementing here in LTFRB and we are bound by that law because before they are given the franchise, that memorandum circular is already there,” said Guadiz in a mix of English and Filipino.

The matter was brought to light after Sen. Raffy Tulfo, who was presiding over the hearing as panel chair, asked who shoulders the discount.

Transport Network Vehicle Services Chairperson Saturnino Ninoy Mopas admitted before the panel that drivers began shouldering the discounts months ago.

“For the past years, TNC has shouldered the 20 percent for PWDs, seniors, and students. But starting this year, I’m not entirely sure which month, but drivers began shouldering it,” Mopas said in Filipino.

Tulfo proceeded to ask Grab Philippines to explain. The ride-hailing firm’s Head of Public Affairs Gregorio Tingson said the firm shouldered the discount to “help drivers” in light of the Covid-19 pandemic.

“Pandemya six months ago lang?” asked Tulfo, to which Tingson answered in the affirmative.

(The pandemic was only six months ago?)

“Opo, kaya nga po in-extend natin hanggat kaya. At ngayon po, alinsunod sa batas ang tanong kung sino ang nag-shoulder noong fees for the discounts, alinsunod po sa batas, ang driver po,” Tingson said.

(Yes, that’s why we extended it as much as we could. And right now, pursuant to the law, drivers shoulder these discounts.)

Tulfo interjected, asking Tingson which law he was citing.

Later into the hearing, Tulfo pressed Guadiz to disclose whether or not Grab Philippines’ actions were a violation of its franchise agreement with LTFRB.

Guadiz said he would assume that it was what happened, but maintained the need to probe the issue.

“May I request them for a statement from the driver and we will give them a show cause [order] and if the evidence warrants, we will issue [an] appropriate suspension of their franchise,” Guadiz added.

Tulfo clarified if this means that the LTFRB would begin investigating complaints from drivers and if proven that Grab Philippines committed a violation, then its franchise would be suspended.

Guadiz said “yes,” adding that what was disclosed by Mopas during the hearing alone could already be used to propel the investigation.

“If that can be reduced into writing, we can take action right away and we will conduct a hearing next week,” he added.

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