Grab files petition to hike rates
GRAB with the Land Transportation Franchising and Regulatory Board (LTFRB) on Friday for a fare increase to sustain high operating costs brought by the implementation of the new Tax Reform Law.
Grab said in its petition that the Tax Reform for Acceleration and Inclusion (TRAIN) Law will increase prices of petroleum products which will hike the cost of a Grab six-seater driver by P50, while Grab premium drivers by P64.
“For a six-seater, this is computed as the sum of the average diesel consumption of full-time six-seater drivers (19 liters for eight trips per day) multiplied by three pesos, and 10 percent monthly car maintenance cost increase (from P5,000 to P5,500 per month) using the Toyota Innova 2017 as benchmark. For premium, this is computed as the average diesel consumption of full-time premium drivers (21 liters for eight trips per day) multiplied by three pesos, and ten percent monthly car maintenance cost increase (from P5,500 to P6,050 per month) using the Toyota Fortuner 2017 as benchmark,” Grab said.
“Given an average of eight trips per day for six- seater and premium drivers, a Grab driver’s cost to operate increases by approximately P10 per trip for six-seater and P11 per trip for premium. To maintain the same earnings per trip, average fare will need to increase by 5.73 percent and 6.39 percent for six- seater and premium respectively,” Grab added.
Grab said that it is requesting for fare increase for its six-seater trips from a rate of P13 to P19 per kilometer in addition to the base rate of P60 to a new rate of P14 to P20, and an additional P23 per minute charge over the cap of P2.30 per minute.
Premium trips should likewise increase from P16 to P23 per kilometer in addition to the base rate of P70 to a new rate of P18 to P25 and an additional P0.25 per minute charge over the cap of P2.50 per minute.
“This increase in fare would ensure that the current technology would continue giving the riding public the capability of selecting the kind of vehicle desired, the time of pick-up and the exact location of pick-up and drop-off,” Grab said.