HOURS after the Land Transportation Franchising and Regulatory Board (LTFRB) ordered it to stop charging passengers an additional P2 per minute on rides, Grab Philippines said it will file an appeal before the regulator, asking it to rescind its directive as this could “affect the income of drivers.”
The regulator ordered the transportation network company (TNC) to immediately suspend the P2-per- minute charge per ride, citing a order released last December, outlining the fare structures of ride-hailing apps.
But according to Grab Philippines Country Head Brian Cu, his group finds the charge “legal,” citing a 2015 order that authorizes TNCs to set their own fare, pending approval by the regulator.
“This order sounds populist, but is actually anti-people because it will hurt the drivers and the passengers more,” Cu said. “The P2 fare component is not a Grab income, since 80 percent goes to the driver, and the 20 percent left is used for additional driver incentives and passenger promos,”
If the P2-per-minute fare component is stopped, Cu added, drivers will not earn enough and will be left with no option but to leave their job as a transportation network vehicle service (TNVS) driver, resulting in even fewer vehicles for the riders.
Cu added that, should this happen, it will take longer for riders to get a ride, and if there are not enough cars, surge may go up.
Other passengers booking from far locations may be left unallocated.
“We hope the public realizes that this P2 fare component was implemented for their own benefit and not Grab’s,” Cu said. “This unilateral fare-setting prerogative was taken away in 2017 in a new department order, but fares set before that will remain, and only future adjustments are covered.”
Transportation Undersecretary Thomas M. Orbos said the government will thoroughly study the case, noting that it will also review the orders cited by both parties.
“Definitely, we will not let this pass. Grab will have to be accountable for this,” he said in a transcript sent by the transportation department.
The P2 was implemented only in July 2017 to protect drivers’ income from traffic congestion and far pick-up locations.
“If our drivers lose income because of traffic in Metro Manila, they might stop working as a TNVS driver, and that would mean fewer vehicles to serve the public.” Cu said.
Party-list Rep. Jericho B. Nograles of the Puwersa ng Bayaning Atleta has said Grab has been “illegally” charging its customers P2 per minute of travel time despite its public declarations and collaterals they are not making any per-minute charge.
Nograles said two weeks ago that for the past five months alone, Grab has already overcharged its customers P1.8 billion, saying this amount should be refunded to all Grab users.
Image credits: Nonoy Lacza