LTFRB penalizes Grab R10 M for overcharging riders

The Land Transportation Franchising and Regulatory Board has imposed a R10million fine to ride-sharing firm Grab Philippines for overcharging its riders through its R2 per minute fare component.

In the order dated July 9, My Taxi.PH, Inc. (Grab) was ordered by the Board to “pay the penalty of R10 million,” citing that its imposition of the travel fare rate was “invalid and without authority from the Board, for which the respondent is to suffer its consequences.”

“If we are to compute the penalty for each case of overcharging under Joint Administrative Order no. 2014-001 in the amount of R5,000, and disregarding the repeat violation committed which would result to progressive rate of penalty, and multiplying the same to the number of successful rides which charged the unauthorized time rate charge of R2 per minute, the penalty imposable will amount to trillions of pesos,” the order read.

PBA Partylist Representative Jericho Nograles has accused the transport network company of amassing at least R3.2 billion from its riders for “illegally” imposing the R2 extra travel time charge on top of its governmentapproved fare rate resulting to a series of hearings and the suspension of the R2 per minute charge. The nine-page order further stated that the Board was “mindful of the rule that the violation of terms and conditions would merit cancellation of the accreditation of the Transport Network Company. However, the paramount consideration of the Board is the overriding interest of the riding public, which constrains the Board not to impose such penalty of cancellation.”

Aside from the hefty fine, the Board also directed Grab to reimburse the riders who were charged with R2 per minute fare from June 5, 2017 to April 19, 2018 through rebates.

According to the LTFRB, the rebate can be availed of 20 days from the time the decision becomes final.

“The amount of the rebate shall be limited to the portion of the income of the respondent only, directly related to or arising from R2 per minute, during the period of its unauthorized imposition,” the order said.

The LTFRB also directed Grab to submit a report of compliance of the Decision of the Board, a week from the time the rebate has been fully implemented.

According to the LTFRB, Grab may file a motion for reconsideration within 15 days. If the board denies their motion, they may appeal its decision to the Department of Transportation (DoTR).

The order, released to reporters Wednesday, was penned by LTFRB Chairman Atty. Martin Delgra III, and also signed by Board Member Engr. Ronaldo Corpus.

Board Member Atty. Aileen Lizada also signed, but with a note saying “I dissent. See separate opinion.”

Based on the three-page copy of Lizada’s dissenting opinion, it stated that Grab’s R2 per minute was still covered by a 2015 department order when it was implemented by the ride-sharing company mid-2017.

According to Lizada, the R2 travel time charge on top of Grab’s R40 base fare and R10 to R14 per kilometer rate has legal basis.

“The authority given to transport network companies to formulate their fare structure can be clearly seen in the Department Order 2015011 of the Department of Transportation and Communications,” the statement said adding that the order only gives them the power to “oversee” the fare rates.