Grab Philippines is asking the Land Transportation Franchising and Regulatory Board to reverse its order of a P10-million fine for supposed illegal P2 per minute charge on Grab passengers.
In a 27-page motion for reconsideration, Grab through its registered company, MyTaxi.PH, said LTFRB chairman Martin Delgra and his board members must “reverse and set aside” their July 9 directive to penalize Grab and return the P2 charge to its customers for “utter lack of merit.”
“Respondent MyTaxi.PH respectfully prays that this Honorable Board reverse and set aside its order dated July 9, and in lieu of, issue a new one dismissing the show-cause order and case for utter lack of merit,” it read.
The transport network company (TNC) challenged LTFRB’s imposition of fines, which it said “is contrary to law.”
It invoked Department of Transportation Order 2015-11 granting TNCs the right to “set fares subject to LTFRB’s oversight, and another order, DO 2017-11 issued on June 19, 2017, allowing them to have a “pre-arranged fare as authorized by the LTFRB.”
Grab stood firm on its ground that DO 2015-11 was still “valid and effective until declared unconstitutional by a court of competent jurisdiction.”
“Moreover, the Honorable Board failed to establish that said department order has been impliedly repealed by any subsequent issuances of [the] Department of Transportation… As a rule, repeal by implication is frowned upon, unless there is clear showing that the latter statute is irreconcilably consistent,” it said.
Despite such, Grab said it still subjected itself to the authority of the LTFRB and “complied” with its oversight functions.
Puwersa ng Bayaning Atleta Rep. Jericho Nograles earlier complained to LTFRB about Grab’s alleged “illegal” P2 per minute charge on top of its government-approved pricing scheme.
In December 2016, DoTR allowed the mobile app-based Grab to charge a P40 flagdown rate and an added P10 to P14 per kilometer travel, excluding travel duration charges.
The government then ordered the suspension of the P2 per minute charge.
In July, the LTFRB ordered Grab to pay a P2-million fine and reimburse its customers for failure to inform them about the P2 per minute suspension.
Meanwhile, another TNVS company, Hype, has denied that it was charging only P1.25, and not P2.00 per minute for the duration of travel.
Appearing before LTFRB officials in hearing held on Tuesday, Hype issued the statement in response to a show cause order issued last July 13.
“Wala kaming china-charge na [P2 per minute] [We don’t charge P2 per minute]. We deny that categorically,” Hype president Nicanor Escalante said.
But Hype later said that it charges P1.25 per minute instead, which the LTFRB is supposedly aware of.
“Through our letter of May 24, received by the Board May 25, [we are] requesting for [the approval of a] P1.25-per-minute charge. Ini-implement namin ‘yan sa beta testing namin [We are implementing that for our beta testing],” Escalante said.
Hype said that based on its accreditation papers, its flagdown rate depends on the vehicle type—sedans have a base of P40, SUVs P70, and vans P100.
They charge an additional P14 per kilometer, but with a surge cap at times two the charge. There was also no mention of a travel duration charge.
Escalante said the P1.25 travel duration charge was added to encourage drivers who signed up for them.
“We request not P2, but P1.25 per minute, to emphasize the fact that we don’t want to charge P2, maintaining affordability,” he said.
Escalante also admitted that Hype’s fares are generally higher than Grab now, after the LTFRB suspended the latter’s travel duration charge.
Hype was the first transport network company accredited this year, after Grab bought the Southeast Asia operations of Uber. It started operating last July 2, but remains under beta testing mode.
Escalante said they expect to be fully operational in August, with around 3,400 units registered in their system.
LTFRB Chairman Martin Delgra III noted that the Board has received Hype’s request for the travel duration charge, but has yet to decide on decided on it it.
“We confirmed receipt of [the] May 24, 2018 letter from Hype seeking a P1.25-per-minute charge which has yet to be resolved by the Board. We note the manifestation of Hype that they are still in beta testing mode,” said Delgra.