Grab appeals suspension of P2 per minute fare charge

MANILA, Philippines — Ride-sharing company Grab has asked the Land Transportation Franchising and Regulatory Board (LTFRB) to reconsider its order to suspend the imposition of a P2 per minute charge, saying the suspension would “cause great irreparable damage.”

Even then, Grab said it still complied with the order “until further notice.”

In a 14-page motion for reconsideration, the transport network company (TNC) said the decision to suspend the P2 per minute charge pending review of its legality “is contrary to law, the revised rules of procedure of the LTFRB and its jurisprudence.”

“While we stand by our position that the per minute component is legal and necessary, we respect the Board’s legal mandate,” Grab said in a statement.

It warned that the suspension would cause irreparable damage not only to the company, but also to operators and drivers of accredited transport network vehicle services (TNVS). 

Brian Cu, Grab country head, described the order as “anti-people” as it would hurt both the drivers and passengers. 

The LTFRB, in an order last April 18, directed Grab to immediately suspend the charging of P2 per minute pending the “extensive review and resolution” of its legality, which was questioned by Puwersa ng Bayaning Atleta party-list group Rep. Jericho Nograles.

Nograles alleged that Grab was able to collect at least P1.8 billion through the illegal charges it imposed on passengers. 

He and other lawmakers urged Grab to refund the illegal fees that it has collected for the past months. 

Grab maintained that the P2 per minute charge was legal and based on an order by the former Department of Transportation and Communications establishing TNCs as a new transport mode. 

Meanwhile, the LTFRB, in an order signed yesterday, lifted the 1.5x surge cap for Grab.

It cited the accreditation of a new TNC, Hype Transport Systems, in its order which allows Grab to impose a 2x surge charge on their customers. 

The lower surge price was ordered by the Board during a special hearing on Grab’s purchase of Uber last week. 

New TNVS player

Meanwhile, a third TNC is set to compete in the Philippine market as the LTFRB yesterday approved the accreditation of ridesharing company GoLag Inc., which would operate like Grab and Uber.

GoLag will make use of private peers or operators as TNVS and has a certificate of accreditation valid for two years or until 2020. 

Willie Bercasio, operational director of GoLag, said they are setting up the vetting process for the first batch of drivers. 

The company would mainly operate in Laguna but would also cater to the preferred areas of their accredited TNVS. 

Bercasio added that they would offer sedan, AUV and SUV options for their passengers but would have no carpooling option.

GoLag is the third TNC to be accredited by the LTFRB this week following Uber’s exit from the country on Monday. 

On Wednesday, the LTFRB accredited taxi-hailing application Hirna Mobility Solutions Inc. and ridesharing company Hype Transport Systems Inc.

Hirna chief executive officer Francisco Mauricio said in an interview they started full-operations on Thursday following the accreditation from the LTFRB. 

The company is only operational in Davao City for now but Mauricio said they aim to launch in Iligan and Cagayan de Oro by next week. 

Mauricio said they have around 4,000 taxis using their app in Davao City. 

Hype said they plan to start operations with a grand launch on May 26 but will start the pre-accreditation of drivers by next week. 

The accreditation of the three TNCs comes as Uber’s exit raised fears of a monopoly by its rival Grab, which is now under scrutiny of the Philippine Competition Commission. 

Uber ceased operations on Monday despite the interim guidelines issued by the PCC due to a cease and desist order by the LTFRB. 

Meanwhile, senators pressed the LTFRB to enforce the discount for students, senior citizens and persons with disabilities (PWDs) customers of Grab.

Sens. Sonny Angara and Sherwin Gatchalian in separate statements said Uber, before it closed shop in the country, complied with the 20 percent discounts for students, senior citizens and PWDs.

“Social media is full of complaints from students whose applications for the 20 percent student discount on Grab still remain unprocessed. Unfortunately, this is another example of how the monopoly in the TNVS sector is negatively impacting commuters,” Gatchalian said.

Angara reminded Grab and all public utility vehicle (PUV) operators they are mandated by law to grant the discounts. – With Paolo Romero