MANILA — Ridesharing firm Grab Philippines is considering an appeal to the decision of the Land Transportation Franchising and Regulatory Board (LTFRB) to fine it PHP10 million due to its PHP2-per-minute charge.
Grab reiterated that the per-minute charge is legal and in accordance with Department Order No. 2015-11 of the Department of Transportation (DOTr), which allows transportation network companies (TNCs) to impose their own fares with oversight of the LTFRB.
“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 Wednesday
“Either way, we plan to exhaust all administrative means to resolve the issue,” he added.
On Tuesday, LTFRB issued an order, which partially granted Grab’s motion for reconsideration of the Board’s earlier decision to impose the PHP10 million and suspend the PHP2-per- minute charge which was issued on July 9.
In its order, the Board said the fine still remains in effect while Grab will no longer be required to reimburse the per-minute charge to its riders.
Gonzales also urged the LTFRB to restore the per-minute charge to entice its drivers, who have left their platform, to return to resolve the current lack of supply of vehicles amid increasing passenger demand.
“We respectfully ask the Board to immediately restore the PHP2-per-minute time component, so that TNVS (transport network vehicle service) partners who went offline will be encouraged to go back and help address the TNVS supply crisis. This will also encourage active drivers to continue serving the growing passenger demand,” Gonzales said.
Under the fare structure approved by the LTFRB last December 2016, Grab should impose a flagdown rate of PHP40 with an additional rate of PHP10 to PHP14 per kilometer, excluding per minute charges.
The DOTr issued a directive last June, allowing the LTFRB to determine the fares of TNCs. ( Aerol John Pateña/PNA)
