Grab maintains P2/minute charge legal; set to appeal LTFRB order

Grab Philippines warned yesterday that the Land Transportation Franchising and Regulatory Board’s (LTFRB) suspension of its P2 per minute fare component would prompt drivers to leave, which may lead to longer waiting time for riders and a higher “surge” on fares.

In a statement yesterday, Grab Country Head Brian Cu added that fewer vehicles would be left for passengers booking from far locations.

Cu said they would file a motion for reconsideration against the Board’s order to immediately suspend their imposition of P2 per minute fare component.

He maintained that their P2 per minute charge was legal and based on a Department of Transportation order in 2015 authorizing Transportation Network Companies (TNCs) to set their own fares.

“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,” he added. “We hope the public realizes that this P2 fare component was implemented for their own benefit and not Grab’s.”

Cu said DO 2015-11 did not require TNCs to file petition on fares, nor did it require them to inform LTFRB.

“Even so, we still informed LTFRB during a technical working group meeting and in an official email,” he pointed out.

Grab implemented the P2 fare component in July 2017.