LTFRB urged: Suspend Grab’s illegal fee

Lawmakers urged the Land Transportation Franchising and Regulatory Board (LTFRB) yesterday to suspend Grab’s P2 fee per minute of travel while the agency is looking into the supposedly illegal charges.

“It was clear during Tuesday’s hearing that the board did not approve the travel time charge. The proper thing to do for the LTFRB is to suspend it,” Rep. Jericho Nograles of party-list group Puwersa ng Bayaning Atleta said.

It was Nograles who exposed the illegal fee, which Grab collects from riders on top of its flag-down rate of P40, and P10 to P14 per kilometer charge depending on the type of vehicle used.

Quezon City Rep. Winston Castelo said the LTFRB should have suspended the travel time charge.

Based on the reported exchange between LTFRB Chairman Martin Delgra III and Grab’s lawyers, Castelo said the P2 fee was not approved by the board.

“The board should have suspended this while it is waiting for justification from Grab. It should not be allowed to continue at the expense of thousands of riders,” Castelo said.

During the hearing, Grab representatives said the transport network service provider started collecting the travel time charge in June 2017.

Other congressmen said the complaints against Grab underscored the need for the LTFRB to expedite the accrediation of more transport network companies (TNCs).

“We need to encourage competition in this sector to prevent a single company from dictating prices,” Camarines Sur Rep. Luis Raymund Villafuerte said.

He said Grab’s buyout of its rival Uber has led to a monopoly in the ride-hailing business in the country.

Isabela Rep. Rodolfo Albano III said the more TNCs the government accredits, the better for the riders.

“The accreditation of more transport network service providers will give commuters a wider choice. There is demand for this type of service due to the poor state of the country’s public transportation,” Albano said.

He said at least five TNCs have applied for accreditation with the LTFRB.

Albano urged the regulatory body to expedite the processing of the TNCs’ papers if they meet the requirements.

Villafuerte also proposed the transfer of regulatory authority over TNCs from the LTFRB to the Department of Transportation.

“Revamping regulations would make the government more responsive to the needs of the riding public,” he said.

‘Refund P1.8-B hidden charges’

Grab should immediately stop collecting illegal charges from its customers or face shutdown by the government, Sen. Sherwin Gatchalian said.

Gatchalian, who chairs the Senate economic affairs committee, said Grab should refund the estimated P1.8 billion in illegal fees it took from riders through a hidden metering system.

He said the government has the power to close down Grab due to mounting complaints, which the company has failed to address.

“It seems that Grab acts only when it is caught. Grab apologizes only when it is caught. The government gave it the opportunity to make profit but this should not be abused, especially now that it is a monopoly,” Gatchalian told reporters.

“If Grab’s wrongdoings continue, the state has the power to close it,” he added.

Riders noted a 30 percent increase in fares implemented by Grab following its merger with Uber.

Gatchalian said regulatory agencies in other countries require TNCs such as Grab to issue receipts.

He said the LTFRB should require the same for Grab Philippines.

He asked the LTFRB and Philippine Competition Commission to thoroughly review Grab’s operations, including its merger with the Southeast Asia division of Uber.

Gatchalian said he was planning to conduct a Senate investigation into Grab’s illegal charges.