Grab ordered pay P5-M refund

Obviously we’re not happy because if we are happy then the competition landscape would have been restored

Did you ride via Grab from August 2018 to May this year?

If you did, you may expect a refund from the ride-hailing service once the order by the Philippine Competition Commission (PCC) to refund consumers P5 million worth in excess charges takes effect.

The antitrust monitor made the announcement yesterday as it approved a new set of voluntary commitments from the ride-hailing firm to prevent abuse of its monopoly

of the market.

The P5 million refund is part of a total P23 million in fines for several of Grab’s violations of its own commitments during the said period. This includes its failure to remove the “See destination feature” for some drivers,

PCC Commissioner Amabelle Asuncion said affected passengers can expect a refund within 60 days after Grab’s receipt of the order. Refunds for future breaches will be shortened to 30 days.

Since Grab bought out its rival Uber, PCC said it had enjoyed a monopoly of the market.

PCC chairman Arsenio Balisacan said the body was “not happy” after it completed its monitoring of Grab’s compliance with its own commitments last October. “What we’re looking at with the merger is that the public will not suffer in terms of convenience or fare. Unfortunately, we have not been able to achieve the ideal situation where it would be easy for a rider to hail a car and pay a reasonably low cost,” Balisacan said in an interview.

“Obviously we’re not happy because if we are happy then the competition landscape would have been restored. There would be no another undertaking,” he added. The PCC chief said Grab was “overcharging.”

It was also evident from the high rate of cancellation that there was a lack of competition, he added.

Grab Philippines said it would pay the P5 million refund with consumers being informed of the payments five days prior to the release of the amount. Grab’s new set of commitments is effective for the next four years starting 1 November.

Penalty Grab Philippines will be refunding its riders from August 2018 until May this year following an order from the Philippine Competition Commission.