Grab cant’t run away from explaining P2 per minute overcharge – LTFRB
The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered dominant ride sharing firm Grab Philippines to explain the extra P2 per minute it charged passengers.
The LTFRB has issued a show cause order dated April 11 demanding that MY TAXI.PH INC, the registered owner of Grab, explain within five days from receipt why its accreditation as a transportation network company (TNC) should not be suspended or canceled for allegedly charging P 2 per minute of travel time without the Board’s nod. This charge is reportedly on top of its flagdown rate of P 40 with an additional P10 to P14 per kilometer traveled.
The Board also summoned Grab representatives to a hearing on April 17. “Failure on the part of MY TAXI.PH INC to answer in writing this Show Cause Order within the said period from receipt hereof and to appear at the hearing of this case shall be considered as waiver on its part to be heard and this case shall be decided on the basis of the records of this Board,” the LTFRB said.
Puwersa ng Bayaning Atleta (PBA) Partylist Rep. Jericho Nograles accused Grab of imposing illegal charges on its customers. Nograles alleged that the ridesharing company has collected some P 1.8 billion in illegal charges during the past five months alone.
For its part, Grab said that the per minute charge was integrated to the existing per kilometer charge and was not added to the upfront fares.
The LTFRB, in its hearing last Wednesday, has ordered Grab to reduce its surge pricing cap from 2 to 1.5 times the normal fare as it processes the applications of new TNCs. (PNA)