LTFRB summons Grab to attend hearing on alleged P2-per-minute charge
The Land Transportation and Regulatory Board (LTFRB) has issued a show cause order against Grab Philippines, compelling it to explain why its accreditation should not be suspended or cancelled for allegedly charging P2 per minute of travel time without the Board’s approval.
The show cause order, issued on Wednesday, is asking the transport network vehicle service provider to appear on the hearing scheduled on April 17, at 9:00 a.m.
On Tuesday, Puwersa ng Bayaning Atleta (PBA) part-list Rep. Jericho Nograles said Grab should refund its customers some P1.8 billion as it allegedly “illegally” charged customers P2 per minute of travel time, according to his research.
This charge, he said, is on top of Grab’s P40 flagdown rate and on top of the P10 to P14 per kilometer charge.
Nograles said that aside from this P2 per minute additional charge which he said was not approved by LTFRB, Grab has also “committed acts of deception by putting out online collaterals claiming that unlike regular taxi services, they do no impose extra charges for travel time.”
Article continues after this advertisementGrab Philippines Public Affairs Head and Official Spokesperson Leo Gonzales however denied that the transport network vehicle service provider is illegally charging this additional rate, and that the LTFRB was not aware of this pricing structure.
Article continues after this advertisement“Department Order 2015-011 allowed TNCs (transport network companies) to set its own fares with the oversight of the LTFRB. In June 2017, Grab, upon review of its pricing structure, initiated per minute pricing of 2 pesos. This was integrated to the existing per km charges and is not added to the upfront fares,” Gonzales said.
“During this time, we corresponded with the LTFRB to present these changes and was given the opportunity to present in full our business model, supply and demand models and pricing structure during one of the Technical Working Group meetings in late July 2017,” he added.
READ: Grab denies illegally charging riders an extra P2 per minute /muf
