MANILA — The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended the PHP2 per minute travel charge that is being imposed by ride-sharing company Grab to its riders.
In its order dated April 18, LTFRB Chairman Martin Delgra III said the suspension remains in effect as the Board continues its investigation on the issue.
The Board has earlier said that there was no mention of any travel time rate, which Grab has been collecting, when it released its order on the fare structure of transportation network companies (TNCs) last December 27, 2016.
The December 2016 order stipulates that Grab should impose a flagdown rate of PHP40 with an additional rate of PHP10 to PHP14 per kilometer excluding per minute travel charges.
Grab has said that the per minute charge is in accordance with Department Order 2015-11 of the then Department of Transportation and Communications (DOTC), which authorizes transportation network companies to set their own fares subject to the oversight of the LTFRB in cases of shortage of electric power or other sources of energy; strikes; civil disorders or other cause of an abnormal disruption of the market – which results in the declaration of a state of emergency by the President.
Puwersa ng Bayaning Atleta (PBA) Partylist Rep. Jericho Nograles accused Grab of illegally charging PHP2 per minute for their rides, on top of its flagdown rate of PHP40 and charging PHP10 to PHP14 per kilometer.
He said Grab should refund around P1.8 billion to its customers because of the alleged overcharging. (Aerol John Pateña/PNA)
