Grab asks LTFRB: Allow P2 per-minute charge

MANILA, Philippines — Ride-sharing company Grab has asked the Land Transportation Franchising and Regulatory Board (LTFRB) to allow it to reimpose the P2 per-minute charge suspended last month.

Grab, in a petition filed on Tuesday, asked the LTFRB to set aside its April 18 order that suspended the P2 per-minute charge per trip.

The transport network company (TNC) argued that the suspension of its per-minute fare “is an infringement of the equal protection clause guaranteed by the Philippine Constitution.”

Grab said the LTFRB has allowed other TNCS to include the same per-minute charge in their fare structure.

“It would be the height of injustice if other transportation network companies are allowed to impose per minute charges and petitioner is the only one that is precluded from doing so,” Grab’s petition read.

The LTFRB has accredited five new TNCS in April – Hype Transport Systems, Inc., Hirna Mobility Solutions, Inc., GoLag Inc., Micab Systems Corp. and Ipara Technologies and Solution (OWTO).

Almost all of the new TNCs would impose per-minute charges, Grab said.

The TNC maintained that the fees were legal and that they have the authority to formulate its own fare structure under the order of the then Department of Transportation and Communications (DOTC).

The LTFRB suspended the charge following allegation that the fees were illegal and that Grab had collected at least P1.8 billion in per-minute charges. 

The LTFRB directed Grab to immediately suspend the per-minute charge pending the “extensive review and resolution” of its legality.

Grab also has a pending petition to hike fares, citing the impact of the new tax reform law on its drivers. 

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.