Grab to comply with LTFRB's P5-M fine

The app-based ride sharing service Grab Philippines on Wednesday said it will comply with the P5 million fine imposed by the Land Transportation Franchising and Regulatory Board (LTFRB) for various violations committed as a transportation network company (TNC).

"I think 'yung hatol ng LTFRB ay fair considering the violation that they mentioned. And if you considered the other options, either cancellation or suspension, hindi na po ita-try i-push na i-apela. Nagpapasalamat kami sa LTFRB na gano'n lang 'yung fine," Grab Philippines country head Brian Cu said in an interview on GMA News' Unang Balita.

The LTFRB on Tuesday slapped both Grab and Uber with a P5-million fine each for the violations they committed under the terms and conditions of the Certificate of TNC accreditation stated in Memorandum Circular Number 2015-016.

Representatives from Grab and Uber admitted during the hearing that they have allowed Transport Network Vehicle Service (TNVS) drivers to operate even without Certificate of Public Convenience (CPC) franchise or provisional authority (PA).

Meanwhile, Cu said that most of the 28,000 vehicles under their platform do not have a CPC or PA and have been continuously operating.

Only about 4,000 vehicles under Grab have the necessary permits to operate legally.

"Twenty-eight thousand po ang nabanggit nating figure na nagbabiyahe sa daan pero hindi naman lahat po sabay-sabay lahat 'yon. Karamihan po doon ay walang permit doon," Cu said.

"Hindi po lahat ng drivers full-time. Karamihan po sa ating mga ka-Grab partners ay part-time," he added.

Cu also defended that their units are not proven to be the cause of massive traffic in Metro Manila.

"Hindi po natin napatunayan na cause of traffic ang Grab. Speculation lang po 'yun. Wala pong study na nagpapatunay," he said.

Cu also assured that Grab has a "built-in insurance" for its drivers and passengers despite the lack of necessary permits to operate.

"Kahit walang permit, full responsibility ng Grab. Unang-una po meron tayong built-in insurance na covered ang driver at tsaka ang pasahero. At tsaka kahit wala silang official permit, hindi natin sila pinapabiyahe hangga't hindi nila ma-complete ang requirements assuming they were to apply for a permit," Cu said.

—Marlly Rome Bondoc/KG, GMA News