LTFRB tells Grab PH to explain P2 per minute charging

The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered dominant ride-sharing firm Grab Philippines to explain the extra P2 per minute it charges passengers.

Photo credit: Grab PH Facebook page

The LTFRB has issued a show cause order dated April 11 demanding that My Taxi.PH Inc, the registered owner of Grab, explain within five days why its accreditation as a transportation network company (TNC) should not be suspended or cancelled for allegedly charging P2 per minute of travel time without the agency’s nod.

This charge is reportedly on top of the flagdown rate of P40 with an additional P10 to P14 per kilometer traveled.

The LTFRB also summoned Grab representatives to a hearing on April 17. “Failure on the part of My Taxi.PH Inc. to answer in writing this Show Cause Order within the said period from receipt hereof and to appear at the hearing of this case shall be considered as waiver on its part to be heard and this case shall be decided on the basis of the records of this Board,” the LTFRB said.

Puwersa ng Bayaning Atleta (PBA) partylist representative Jericho Nograles accused Grab of imposing illegal charges on its customers. Nograles alleged that the ride-sharing company has collected some P1.8 billion in illegal charges during the past five months alone.

For its part, Grab said the per-minute charge was integrated to the existing per kilometer charge and was not added to the upfront fares.

The LTFRB, in its hearing last Wednesday, ordered Grab to reduce its surge pricing cap from 2 to 1.5 times the normal fare as it processes the applications of new TNCs. — Aerol John Pateña (PNA)

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