Grab PH to File Appeal vs LTFRB Fine

Grab Philippines on Thursday said that it will contest the imposition of the PHP10M fine slapped by the Land Transportation Franchising and Regulatory Board (LTFRB) for alleged overcharging.

 

Leo Gonzales, Grab Philippines' Public Affairs head, said that the imposition of the PHP2 per minute fare component is within legal bounds, noting that it is based on the Department of Transportation (DOTr) Department Order 2015-011 that authorized TNCs to set their own fare. 

 

Gonzales said that the order "is binding when Grab implemented the P2 per minute component last June 2017. "

 

He also cited that the per minute fare was also presented during their meeting technical working group meeting the LTFRB Board en banc in July last year. 

 

Gonzales said that it was sent to the Office of the LTFRB chair via email dated August 14, 2017 and received an email response from them. However, the board raised no concerns 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," Gonzales said.

 

"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,"

 

Further, Gonzales appealed to the board to focus on resolving the supply gap with regards to booking a ride.  

 

"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," he noted.