Grab Philippines to appeal LFTRB P10m fine. rebate

July 12, 2018

Grab Philippines on Thursday said the P2 fare per minute waiting time is legal and the penalty imposed by the government is baseless as it said it will appeal the Land Transportation Franchising and Regulatory Board ( LTFRB) fining them P10 million.

"We stand by the legality of P2/minute fare component. Grab’s basis in imposing the P2 per minute fare is the DOTr Department Order 2015-011 that authorized TNCs to set their own fare,” Leo Gonzales, Grab Philippines Public Affairs head said.

He said order is binding when Grab implemented the P2 per minute component last June 2017.

"The per minute fare was also part of the presentation and discussions during Grab's TWG meeting with the LTFRB Board en banc in July, 2017. It was also communicated to the LTFRB Chairman via email in August 14, 2017. We likewise received an email response from the Office of the Chairman. No concerns were raised by the board at that time,” Gonzales said.

"This DO is valid despite the position of the LTFRB to the contrary. LTFRB has no authority to declare DOTr order invalid. Only the courts, not LTFRB, can rule on the validity of an order especially one issued by DOTr, which has direct supervision and control over the LTFRB,” he added.

Gonzales said Grab Philippines does not overcharge since Grab shows fixed and upfront fares before bookings are confirmed.

"There is no basis for the fine being imposed by LTFRB.  We disagree with the Board’s decision and we will file an appeal to protect the ride-sharing industry in the country,” he said.

LTFRB earlier ordered  Grab Philippines to pay P10 million in penalties and to reimburse its passengers for imposing a two-pesos-per-minute charge.

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