The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a show-cause order against Grab Philippines as the regulatory agency started its formal investigation on the TNVS (Transportation Network Vehicles) giant’s alleged violation of its accreditation.
Officials of Grab were directed to appear before the LTFRB on Dec. 6, after the regulating body found that its imposition of a minimum fare of P85 and an additional stop base fare of P40 upon booking in its platform are “being considered as violation of the terms and conditions of its accreditation as transport network company.”
Local officials of the mobile super-app have yet to respond to questions from the Standard as of posting time.
During a congressional hearing by the Committee on Metro Manila Development last week, committee member Marikina Rep. Stella Quimbo, the former chair of the Philippine Competition Commission (PCC), said that Grab violated competition rules by “overcharging customers” despite commitments to regulators “they will not do so.”
Quimbo said that Grab has a history of overcharging its customers and urged the PCC and other related regulatory agencies to investigate Grab for “abuse of dominance” given its substantial market share in the TNVS industry.
According to a local digital advocate group, Grab is also taking advantage of its surge-pricing mechanism and it must be investigated by the LTFRB to make sure the transport provider would not abuse the system.
The group Digital Pinoys added that despite Grab’s denials, it was clear that the ride-hailing firm apparently continues its unfair practice against its passengers, partner drivers, and delivery riders.