Grab to appeal LTFRB fine

GRAB STATEMENT
Attributed to Leo Gonzales, Grab Philippines Public Affairs Head
12 July 2018

We stand by the legality of P2/minute fare component. Grab’s basis in imposing the P2 per minute fare is the DOTr Department Order 2015-011 that authorized TNCs to set their own fare. This DO is binding when Grab implemented the P2 per minute component last June 2017.

The per minute fare was also part of the presentation and discussions during Grab’s TWG meeting with the LTFRB Board en banc in July, 2017. It was also communicated to the LTFRB Chairman via email in August 14, 2017. We likewise received an email response from the Office of the Chairman. No concerns were raised by the board at that time.

This DO is valid despite the position of the LTFRB to the contrary. LTFRB has no authority to declare DOTr order invalid. Only the courts, not LTFRB, can rule on the validity of an order especially one issued by DOTr, which has direct supervision and control over the LTFRB.

More importantly, there is no overcharging since Grab shows fixed and upfront fares before bookings are confirmed.

There is no basis for the fine being imposed by LTFRB. We disagree with the Board’s decision and we will file an appeal to protect the ride-sharing industry in the country.

Loss of driver income, plus a severe lack in supply affects the public service being rendered by our driver-partners. Many people are getting stranded on the road because they can’t book a ride. This is invariably linked to the huge disparity between demand and available supply of cars. We appeal to the Board to focus on resolving the supply gap immediately, as we in turn work hard to continuously improve our over-all service.

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