Grab defends ‘legal’ fares amid questions raised at LTFRB

The company says its drivers are reeling from the recent suspension of its P2-per-minute travel charge. —RICHARD A. REYES

The dominant transport network company (TNC) Grab has maintained that all the fares it currently charges are “legal and upfront,” in response to questions raised in a hearing held earlier this week at the Land Transportation Franchising and Regulatory Board (LTFRB).

In a statement on Thursday, the company said the fares — particularly the minimum of P80 for the GrabCar service and P125 for Grab Premium—were covered by Department Order No. 2015-011 that was issued by the Department of Transportation.

The order, the company said, gave TNCs authority to create their own fare matrices.

In a hearing on Tuesday, Grab representatives had to justify the fares, saying they would apply only if the passenger’s trip is shorter than three kilometers and that they ensure partner drivers would still be well-compensated even if they made short trips.

‘Not informed’

But this explanation failed to convince LTFRB Chair Martin Delgra III, who said the board was not previously informed of the minimum fare as something separate from the TNC’s base fare.

On Thursday, Grab also accused Pwersa ng Bayaning Atleta (PBA) Rep. Jericho Nograles, the lawmaker who had questioned the fares, of “rocking the boat for his political ends, not really to protect the riding public.”

Blame game

“Because of (Nograles)’ efforts, the P2-per-minute fare component was suspended by the LTFRB. This reduced the income of drivers and discouraged them from going out and serving out passengers. That is why we have an extreme lack of vehicles and why the public finds it hard to get a ride,” it said.

According to the latest figures the company released to the Inquirer, only around 9,000 of its 30,000 partner drivers are currently active and can accept bookings.

Grab earlier said it receives around 650,000 requests daily.

The large gap remains despite a 19-percent increase in the number of drivers that the company reported in May.

The company said many drivers had been discouraged from plying the streets and accepting bookings since the LTFRB suspended its P2-per-minute travel charge in April.