Grab said TNVS charges is expected to drop with the entry of new industry players. /Inquirer file photo
GRAB assured the public on Wednesday that its fare surge is only temporary given the recent accreditation of five new transport network vehicle service (TNVS).
According to Grab, the additional TNVS in the country would lessen the demand and would later result to lower fare charges.
“We are of the view that any perceived increase in price is a not an exercise of any market power, but the result of demand and supply imbalance given the current shortage of available drivers and the regulatory constraint relating to the Transport Network Vehicle Service (TNVS) cap, which are outside of our control,” Grab said.
This situation is likely to be temporary, especially given the Land Transportation Franchising and Regulatory Board’s (LTFRB’s) accreditation of at least five new Transport Network Companies (TNCs) capitalizing on Uber’s exit,” Grab added.
During a hearing on Tuesday, the LTFRB said it was not aware of the P80 minimum fare of the company.
“Obviously not, in so far as the computation of the minimum fare is concerned,” LTFRB Chairman Martin Delgra III said during the hearing on the fare hike petition of Grab.
“Kaya po nalito kami doon sa minimum fare compared to the base fare and in relation to the other factors to determine the fare,” he added
Grab also maintained its ground that all of its fares were “legal and upfront.”