LTFRB orders Grab to stop charging P2 per minute for travel time

The Land Transportation Franchising and Regulatory Board (LTFRB) said on Thursday it is cancelling the P2 per minute travel charge of ride-sharing service Grab Philippines.

LTFRB Chairman Martin Delgra III issued the order, dated April 18, as the board continues to investigate what  PBA party-list Representative Jericho Nograles claimed was part of “illegal” charges of the transport network company.

“Further to the Order issued by the Board on 17 April 2018, pending extensive review and resolution on the issue of the respondent’s travel time charge of P2.00 per minute in their fare structure and consistent with the Order of the Board dated 27 December 2016, the Board directs respondent, MY TAXI.PH.INC (GRAB) to immediately suspend the imposition of P2.00 per minute charge,” the order read.

“This Order shall be effective until further Order of the Board,” it said.

Nograles thanked the LTFRB for the suspension of the P2 per minute charge.

"I hope that refund for these hidden charges will be ordered soon, as well and that the drivers are spared from paying this refund as they played no part in reprogramming the Grab algorithm to include these secret charges," he said in a statement.

In a separate statement, Grab said it will ask the LTFRB to reconsider the the travel charge suspension order.

“This order sounds populist but is actually anti-people because it will hurt the drivers and the passengers more,” Grab Philippines country head Brian Cu said.

Last week, Nograles urged Grab Philippines to refund some P1.8 billion the transport network company supposedly overcharged is riders.

My TAXI.PH Inc., the operator of Grab Philippines, cited the Department of Transportation and Communications’ (DOTC) Department Order 2015-011 which supposedly gives the TNC the right to impose the P2 per minute travel time charge.

The P2-per minute charge “legal” and 80 percent of the money goes directly to the drivers, with 20 percent as Grab’s commission.

Grab said it also used some of the proceeds from the P2 charge as drivers’ incentives and promos in favor of passengers. —with a report by Erwin Colcol/VDS/BM, GMA News