Grab seeks to lift suspension of P2-per-minute charge

Ridesharing company Grab Philippines on Friday filed a motion for reconsideration before the Land Transportation Franchising and Regulatory Board (LTFRB), asking the board to lift the suspension of the PHP2-per-minute travel charge imposed on its riders. (Photo: Grab/Facebook)

MANILA — Ridesharing company Grab Philippines on Friday filed a motion for reconsideration before the Land Transportation Franchising and Regulatory Board (LTFRB), asking the board to lift the suspension of the PHP2-per-minute travel charge imposed on its riders.

“The said decision is contrary to law, the revised rule of procedure of the LTFRB and jurisprudence, which would cause grave or irreparable damage, not only to the respondent but more so, to the operators and drivers of the accredited transportation network vehicles if the same is not rectified,” the motion read.

Grab maintained that the travel duration rate is legal and in accordance with a 2015 order of the Department of Transportation that allows transportation network companies (TNCs) to set their own fare rates.

In a statement Thursday, Country Head Brian Cu said drivers would not earn a sustainable income and would be forced to quit their jobs as transport network vehicle services operators if the PHP2-per-minute charge is stopped, resulting in fewer vehicles for passengers.

This will lead to longer waiting time for the riders, causing fare prices to increase drastically while other passengers from far locations may be left unallocated, Cu added.

He said 80 percent of the travel duration charge goes to the driver while 20 percent is used for driver incentives and passenger promos.

Grab had presented its fare structure, including the PHP2-per-minute charge, in a technical working group meeting with the LTFRB in July 2017, after imposing the charge the previous month.

In its order dated April 18, LTFRB Chairman Martin Delgra III said the suspension stands as the board investigates the issue.

The board said there was no mention of any travel time rate, which Grab has been collecting, when it released its order on the fare structure of TNCs on Dec. 27, 2016.

What the December 2016 order stipulates is that TNCs, such as Grab, should impose a flagdown rate of PHP40, with an additional rate of PHP10 to PHP14 per km.

In the meantime, the ride-hailing firm has complied with the LTFRB’s order and stopped implementing the per-minute charge.