Grab appeals suspension of P2-per-minute charge

MANILA, Philippines – Grab Philippines on Friday, April 20, filed a motion for reconsideration after the Land Transportation Franchising and Regulatory Board (LTFRB) ordered the ride-hailing company to suspend its P2-per-minute travel duration charges.

In its appeal, Grab Philippines said that the suspension order is "contrary to the law" and would "cause irreparable damage" to riders and drivers.

"[T]he 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 said.

LTFRB maintained that it did not approve the additional travel duration charges, consistent with its December 27, 2016 order that regulated the fares of ride-hailing companies.

Under the government-approved fare scheme, Grab can only charge a flagdown rate of P40 and an additional P10 to P14 per kilometer, the December 2016 order said.

In a statement released late Thursday, April 19, Grab Philippines said they had removed the P2-per-minute charges in their fare scheme, but reiterated that the charges went to the drivers and the riders. (READ: Did Grab 'illegally' charge its riders higher fare?)

"Pursuant to LTFRB's order, we are suspending our P2-per-minute fare component effective today and until further notice. We respect and comply with the Board's decision. We will continue to reach out to the Boad to explain our position," Grab said.

"Our goal is to protect the interests of both our passengers and driver-partners. We hope that our regulators will understand the balance that the TNVS (transportation network vehicle services) industy needs to protect the livelihood of drivers and sustain the transportation demands of the riding public," it added.

PBA Representative Jericho Nograles had accused Grab Philippines of charging its riders "illegally" and is demanding that the ride-hailing company refund its customers a total of P1.8 billion in supposed overcharged fares for the last 5 months.– Rappler.com

Aika Rey

Aika Rey covers the Philippine Senate for Rappler. Before writing about politicians, she covered budget, labor, and transportation issues.

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