LTFRB fines Grab P10 M for P2-per-minute charge

The Land Transportation Franchising and Regulatory Board (LTFRB) slapped a P10 million fine on ridehailing service firm Grab for imposing a P2-per-minute charge on its passengers.

In a nine-page order dated July 9 and released yesterday, the LTFRB also ordered Grab to reimburse, by way of rebates, passengers who were affected by the additional charges from June 5, 2017 up to the time it was suspended on April 19.

“Respondent shall submit a report of compliance of the decision of the board one week from the time the rebate has been fully implemented, under pain of additional penalty for non-compliance,” the order read.

The LTFRB said the rebate will be available for only 20 days from the time the decision becomes final or when Grab shall commence the implementation of the rebate.

“The rebate will only apply to Grab riders who were charged the time rate of P2 per minute, without authority from the board,” the order read.

The order was signed by LTFRB chairman Martin Delgra III and board member Ronaldo Corpus.

The third board member, Aileen Lourdes Lizada, did not sign the order.

In a statement posted on Viber, Lizada: “I signed the order with a comment: ‘I dissent, see separate opinion.’”

However, Lizada did not say why she dissented.

Pwersa ng Bayaning Atleta Rep. Jericho Jonas Nograles, who called out Grab for the additional charges, said the LTFRB order is proof that Grab has been illegally charging its passengers.

Grab public affairs head Leo Emmanuel Gonzales, for his part, declined to comment as they have yet to study the order.

In its order, the LTFRB said allowing transport network companies such as Grab to impose fares at their “whims and caprice” would render its regulatory functions ineffective.

The LTFRB said Grab cannot use as a reason Department Order 2015-011 of the Department of Transportation. It said the DO should be read and understood in light of existing laws.

“The invocation by the respondent of DO 2015-011 as the legal basis to impose unilaterally a time rate of P2 per minute runs counter to the fundamental regulatory function of the board,” the LTFRB said.

It also scored Grab for violating its terms and conditions of accreditation to do business, noting how the ride-hailing firm allowed the operation of colorum transport network vehicles, for which it was earlier fined P5 million.