By Alexandria San Juan
The Land Transportation Franchising and Regulatory Board (LTFRB) gave ride-sharing company Grab five days to explain its P2 per minute charge on its rides following a lawmaker’s allegations that they amassed P1.8 billion from their riders for “illegal charging.”
The LTFRB said yesterday that it has already issued a show cause order for Grab to explain why its accreditation should not be suspended over the allegations.
The order, which was released on Wednesday, stated that the alleged R2 per minute of travel time are being charged by Grab without LTFRB’s approval.
It appears that the “illegal” charge per minute is on top of its flagdown rate of R40 and charging of P10-P14 per kilometer.
This came after the board learned of the allegations made by PBA Partylist Representative Jericho Nograles earlier this week that Grab owes their riders P1.8 billion based on his computation for the past five months alone.
“Grab charges P2 per minute illegally. The LTFRB has not allowed them to charge P2 per minute but they have charged R2 per minute to everyone,” Nograles said in an earlier interview.
Meanwhile, the transport network company denied the accusations and maintained that they have been “truthful and transparent” with their service to the riding public.
Grab Philippines Public Affairs head Leo Gonzales said in a statement that they are “allowed” to set its own fares with the guidance of the regulating body.
“Department Order 2015-011 allowed TNCs 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 P2. This was integrated to the existing per km charges and is not added to the upfront fares,” Gonzales explained.
He added that the per-minute charge was implemented for their partner-drivers to have a “great chance of making ends meet and supporting their needs” despite of everyday congestions on the road.
Gonzales said that they informed the LTFRB about their changed fare structure which they presented during one of the Technical Working Group meetings in July 2017.
“During times when questions were raised about fares in certain trips, we would always back compute and provide the basic formula for the same; including the per minute charges,” he said.
The issue will be discussed during a hearing set by the board on April 17, Tuesday, at the LTFRB office in Quezon City.
During a special board meeting on Wednesday, the LTFRB has ordered Grab to lower its surge price from x2 to x1.5 amid the controversies of the “illegal” per minute charge thrown at them.
After Grab acquired rival Uber’s operations in the Southeast Asia, TNVS riders complained about the former’s higher price surge which, according to Grab Philippines country head Brian Cu, was due to lack of drivers.
“The board has directed Grab to immediately lower its surge, thereby, modifying the December 27, 2016 order allowing a x2 on the surge, to immediately lower its surge from x2 to x1.5 while the petitions for accreditation of other TNCs are being processed,” lawyer Aileen Lizada, LTFRB member, told reporters on Wednesday.
Grab Philippines said that they immediately lowered its surge cap to x1.5 at least half an hour after the board gave the order.
Three other TNCs, Lag Go, Hype and Owto, are expected to enter the ride-sharing industry this year pending applications for LTFRB accreditation.
