Grab Philippines fined for overcharging, vows to challenge ruling

Grab Philippines
Photo: Grab's Facebook page

Grab Philippines said it is studying its legal options regarding the regulator’s decision to fine the company P10 million ($187,000) for charging passengers additional per minute fee on top of its approved rates.

In a statement posted on its social media page, Grab Philippines stood on its claim that the implementation of the P2 ($0.04) per minute fare component is legal.

Grab made the statement after receiving the decision of the Land Transportation Franchising and Regulatory Board (LTFRB), the country’s transportation regulator.

“We stand by the legality of the P2 pesos per minute fare component and we are disappointed by the order of LTFRB. We would like to reiterate that it is legal,” the company said.

Under the government-approved fare scheme issued in December 2016, Grab Philippines can only charge a flagdown rate of P40 and an additional P10 to P14 per kilometer.

But Grab said that the additional charge was “legal” and that LTFRB knew about it.

“We are currently studying our legal options regarding LTFRB’s order. But no matter how we decide to move forward from this, be assured, Grab will stay,” the company said.

In its July 9 order, the LTFRB has asked Grab Philippines to pay P10 million in penalties for overcharging and to reimburse its passengers by way of rebate.

“The amount of rebate shall be limited to the portion of the income of the respondents only, directly related to or arising from P2 per minute, during the period of its unauthorized imposition,” the LTFRB order said.

The LTFRB also ordered Grab Philippines to submit a report of compliance of the decision one week from the time to the rebate has been fully implemented, under “pain of additional penalty for non-compliance”.

Grab assured its driver-partners and passengers that it remains “fully committed to ensuring quality of service to passengers and fair income opportunities for its driver partners”.

“We know that there’s still a lot of things to improve on,” the company said.

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