Grab files fare hike petition

Ride-hailing service Grab Philippines yesterday filed a petition for fare increase at the Land Transportation Franchising and Regulatory Board (LTFRB), citing the impact of the new tax reform law on its drivers.

In a six-page petition, Grab is pushing for an increase on its fares from a rate of P10 to P14 per kilometer to a new rate of P11 to P15, in addition to the base rate of P40 and increase its per minute charge from P2 to P2.10 per minute.

“The 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 pickup and the exact location of pick up and drop off,” the petition read.

“In addition, this requested increase would guarantee the riding public the security of real-time GPS (Global Positioning System) tracking, transparent pricing and the comfort of riding in a new, clean and safe vehicle,” it added.

The transport network company (TNC) also wants an increase of 6.39 percent for its premium drivers, from P16 to 23 per kilometer to P18 to P25 per km, in addition to the base rate of P70 and an additional 25 centavos per minute charge over the cap of P2.50 per minute.

For six-seater trips, Grab is proposing a new rate of P14 to 20 per kilometer in addition to the base rate of P60 from the current price of P13 to P19 and an additional 23 centavos on its per minute charge of P2.30, an increase of about 5.73 percent.

According to Grab, the tax reform law would increase the excise tax for every liter of gasoline to P7 from the current rate of P4.35.

The TNC said it would give a daily additional cost of P81 for a full-time Grab driver with an average of 12 trips a day, including the monthly car maintenance which they claimed is expected to go up by 10 percent, from P4,000 to P4,400.