‘We are operating at a loss,’ Grab tells LTFRB
Contrary to Land Transportation Franchising and Regulation Board’s (LTFRB) claim that ride-sharing firms were earning millions of pesos, Grab Philippines said it has been “operating at a loss.”
“Grab Philippines does not make a single peso from its 20% commission on rides. What we make in commissions is returned more than two-fold as incentives to drivers and promos to passengers. We are operating at a loss and have been from the start,” Grab said in a statement on Wednesday.
“Unlike what the LTFRB Board has pronounced, we are not raking in 150 million a month, nor is this about greed as was discussed in media with the chairman. At some point, Grab will begin to aim for profit, but that time is not now, and it will never take advantage of our drivers or passengers,” it added, referring to LTFRB chair Martin Delgra III.
Grab explained that all payments for transport network vehicle service (TNVS) applications go to legal fees and filing, including the fees of thousands of its drivers and operators, who have been granted Provisional Authority (PA).
The firm then released the breakdown of the fees for the processing of new TNVS applications, which amounts to a total of P5,600 per unit.
“Aside from this, there are a good number of PA grantees that never got to pay their fees and these costs were subsequently shouldered by Grab,” it said.
Despite this, Grab said it is still on “investment mode.”
The LTFRB earlier estimated that Grab Philippines was earning P60 million monthly from its 20-percent share of its drivers’ income.
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