LTFRB allows Grab, TNCs to re-impose P2-per-minute charge

The Land Transportation Franchising and Regulatory Board (LTFRB) has allowed all transportation network companies (TNCs) to re-impose a P2-per-minute charge to passengers as part of their fare structure.

Grab PH country manager Brian Cu (right) explaining the company’s fare structure to LTFRB officials during a hearing

This as the LTFRB issued on Wednesday, September 5, Memorandum Circular No. 2018-19 which sets a uniform fare structure on transportation network vehicle services (TNVS) units of ridesharing companies.

“The Board hereby authorizes transportation network vehicle services to charge P2-per-minute of travel time from origin to destination as part of its fare structure,” the LTFRB said in its memorandum.

It also directed the TNCs to provide a breakdown on their fares, including flagdown rate, per kilometer rate, travel time rate and surge price on their electronic receipts.

The order will not affect the final resolution on cases that were filed against Grab Philippines and Hype Transport Systems in relation to the P2-per-minute charge which were allegedly imposed without authority from the agency.

TNCs earlier called on LTFRB to allow them to impose per-minute charges to provide sustainable income to their drivers.

Grab also said it is considering an appeal to the decision of the LTFRB to fine it P10 million due to its P2-per-minute charge.

“We are going to bring this up to the DOTr as a next step and so on and so forth until the decision is reversed or a final resolution is reached,” Grab public affairs head Leo Gonzales said in a press briefing.

“Either way, we plan to exhaust all administrative means to resolve the issue,” he added. — Aerol John Pateña (PNA)

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