Grab to ask LTFRB to restore P2 per minute travel charge

Grab Philippines said on Thursday it will ask the Land Transportation and Franchising Regulatory Board (LTFRB) to restore the P2 per minute travel charge.

On Wednesday, the industry regulator ordered MY TAXI.PH Inc., the operator of Grab Philippines, to stop charging riders a P2 per minute travel fee. 

In a statement sent to reporters via Viber, Grab said it will file a motion for reconsideration based on the argument the transportation network companies (TNCs) were allowed to set their own fares under a Department of Transportation 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.

The LTFRB ordered Grab to cancel the travel charge while the fare structure is under review.

On Wednesday, Grab admitted that it did not inform riders about the travel charge implemented in July 2017.

According to the TNC, the travel charge is needed to ensure that drivers will be able to earn enough.

“The P2 fare component is not a Grab income since 80 percent goes to the driver, and the 20 percent left is used for additional driver incentives and passenger promos,” Cu said.

“We hope the public realizes that this P2 fare component was implemented for their own benefit and not Grab’s,” he said.

Cu noted the additional charge was put in place to ensure that drivers would be paid sufficiently for their trips.

“If our drivers lose income because of traffic in Metro Manila, they might stop working as TNVS driver and that would mean fewer vehicles to serve the public,” Cu said. —VDS, GMA News