Grab Philippines is set to reimplement the P2 per minute charge to its passengers after the Land Transportation Franchising and Regulatory Board issued a circular on fare structure for transport network vehicle service.
“Upon review by the Board of the existing fare structure in the transport industry, there is a need to rationalize and adjust the fare structure for TNVS in order to maintain its viability,” LTFRB said in a Memorandum Circular No. 2018-019.
“Wherefore, premises considered, pursuant to the Board’s power to determine, prescribe and set fares for public land transportation services under EO No. 202 and DO No. 2018-13, the Board hereby authorizes TNVS to charge P2 per minute of travel time from origin to destination as part of its fare structure,” the agency’s circular added.
The LTRB said the P2 per minute charge shall apply to all types of TNVS vehicles whether sedan, AUV/6 seater, SUV and sub-compact/hatchback.
“The electronic receipt issued by the TNCs shall be unbundled to reflect the breakdown of the fare, e.g. flag down rate, per km rate, travel time rate and surge price,” it added.
The LTFRB also reversed its order directing Grab to reimburse riders who paid the travel charge from June 5, 2017 to April 19, 2018.
However, it maintained that Grab must pay P10 million in penalties for hidden charges. Brian Cu, Grab Philippines Country head said its partners have endured low earnings in the last four months following the suspension of the legal P2 per minute fare component.
“This has forced a number of them to stop driving which in turn gravely affected the supply situation. Thus, the lifting of the suspension of the P2 per minute fare component will make our TNVS partners see a path towards more sustainable income and will help end the wait for passengers who deserve a ride when and where it is needed,” he added.
“We would like to assure our passengers that Grab will continue to implement fares that are legal and justified. For transparency, admin compliance to the LTFRB, we have also implemented the issuance of a new e-receipt which shows the breakdown of fares for each ride,” he added.
Additionally, Grab said it would exhaust all administrative and legal means reverse the P10-million fine imposed by the LTFRB.
“We are going to bring this up to the DOTr as a next step, and then so on and so forth until the decision is reversed or a final resolution is reached,” according to Leo Emmanuel Gonzales, public affairs head at Grab said in a press conference held in Makati.
“Grab will exhaust all administrative and legal measures until this decision is overturned or resolved with finality,” Gonzales said.
Transport network vehicle services consist of vehicle owners and operators who use Grab’s ride-hailing app.
Grab’s fleet of vehicles is around 43,000 units, but only 33,000 to 35,000 are on the road daily due to the number coding scheme.