Grab Philippines seeks to reverse LTFRB’s P10 million fine

July 24, 2018

Grab Philippines on Tuesday has filed a motion for reconsideration to reverse a P10 million fine and reimbursement to its passengers imposed by Land Transportation Franchising and Regulatory Board (LTFRB) over the  two-pesos-per-minute charge.

In a 27-page motion for reconsideration, MyTaxi.Ph wants LTFRB to reverse and set aside the P10 million fine and reimbursement to its passengers for “utter lack of merit.”

Grab said LTFRB has no authority under existing laws and jurisprudence to declare Department Order 2015-011 as invalid, especially as the LTFRB is an attached agency of the issuing department - the Department of Transportation.

Grab said the LTFRB was aware of the P2.00 per minute fare component as early as nine months before April 19, 2018, when the agency suspended it.

"Grab informed the LTFRB about the P2.00 per minute charge during its Technical Working Group (TWG) meeting on July 27, 2017 during which Grab presented its business model including its pricing scheme. In addition, Grab sent an e-mail to the LTFRB on August 24, 2017 to provide a written explanation of Grab’s pricing scheme, the receipt of which was duly acknowledged by the LTFRB,” the ride-sharing app said.

LTFRB earlier said Grab Philippines “failed to impress the Board that its imposition of the per- minute travel fare rate is within the purview of its discretion or authority.”

LTFRB ordered Grab Philippines to reimburse the passengers who were charged P2 per minute from June 5, 2017 to April 19, 2018.

The Board said the reimbursement should be by rebate on future rides, and the rebate will only apply to Grab riders who were charged the time rate of P2 per minute without authority from the board. DMS