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LTFRB junks order for Grab to reimburse passengers

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REUTERS

THE Land Transportation Franchising and Regulatory Board (LTFRB) on Monday revoked its order for Grab Philippines (MyTaxi.PH, Inc.) to reimburse passengers who paid a P2 per minute charge from June 2017 to April 2018, saying there was “lack of basis to support reimbursement by way of rebate for future riders.”

In the Sept. 4 order, the regulator said it is partially granting Grab Philippines’ motion for reconsideration on its earlier order for the company to reimburse by way of rebate the P2 per minute fare component it charged its passengers.

However, the LTFRB said Grab Philippines still has to pay the P10 million fine for overcharging its passengers and its failure to inform the board of its P2 per minute charge.

“The Board en banc takes note of the fact that the respondent herein unilaterally imposes the P2 per minute of travel time without authority from the Board despite the Order dated Dec. 27, 2017. The issuance of the said order is clear indication or reminder that prior approval of the Board is required before the additional rates may be imposed,” the LTFRB said.

Grab Philippines was sought for comment on the regulator’s latest decision but is yet to issue a statement as of press time.

Grab Philippines has always maintained its fare structure is legal and has been fully disclosed with the LTFRB. It said Department Order 2015-011, which was the government’s guiding document for transport network vehicle services (TNVS) at that time, allowed Grab Philippines to impose its own fares.




Since June, the LTFRB was tasked by the Department of Transportation through a new department order to also regulate the fares of TNVS. The government has yet to implement a new fare structure. — Denise A. Valdez