Grab asks LTFRB to reconsider P10-million fine

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GRAB PHILIPPINES has appealed the fine imposed by the regulator. — WWW.FACEBOOK.COM/GRABPH

By Denise A. Valdez

GRAB PHILIPPINES (MyTaxi.PH) filed last week a motion for reconsideration to the Land Transportation Franchising and Regulatory Board (LTFRB) for the P10-million fine it received earlier this month on alleged “overcharging.”

In a statement on Tuesday, the transport network company (TNC) maintained its adherence to the Department Order (DO) 2015-01 — which allows a TNC to set its own fares — was in “good faith.”

“On June 5, 2017, pursuant to DO 2015-011, the prevailing government issuance at the time, Grab imposed its P2.00 per minute fare to ensure that its hard-working TNVS partners would earn a decent living despite the worsening traffic conditions,” it said.

It added, “Grab maintains its position that the LTFRB has no authority under existing laws and jurisprudence to declare DO 2015-011 as invalid, especially given that the LTFRB is merely an attached agency of the issuing department — the Department of Transportation.”

The company also insisted that the LTFRB was informed and had acknowledged the company’s fare matrix, specifically the contested P2-per-minute charge.

The motion for reconsideration was submitted on July 19. Schedule for its hearing is yet to be set.

Sought for comment on Grab’s filing, the LTFRB told BusinessWorld “The board is carefully studying the motion for reconsideration. We’ll give you an update in a week.”

Regulators slapped a P10-million fine on Grab on July 9 and ordered it to reimburse through rebate the P2-per-minute waiting time charge it implemented from June 5, 2017 to April 19, when the charge was suspended.

Grab earlier said the suspension of the per minute charge was affecting passenger difficulty to book rides as it influences driver income.

Last week, the LTFRB likewise issued a show-cause order to TNC Hype Transport Systems, Inc. for allegedly also imposing a P2-per-minute travel time charge without authority from the Board. It said the ride-hailing company must explain its fare structure or else face suspension.

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