Grab Claims Unfair Treatment Over P2-Travel Charge Non-Reimposition

Ridesharing firm Grab Philippines has claimed that the Land Transportation Franchising and Regulatory Board (LTFRB) is being unfair when it suspended the firm’s PHP2-per-minute travel charge on its riders.

In its petition filed before the Board dated May 18, Grab said the suspension by the Board of the per minute fare has infringed the Equal Protection Clause of the Constitution as it has allowed other transportation network companies (TNCs) to impose similar charges prejudicing their operations.

“The Honorable Board’s assailed Order dated 19 April 2018 suspending the petitioner’s imposition of its per minute charge as a component of its fare structure violates petitioner’s right to equal protection of the law since while the Honorable Board suspended such fee imposition by the petitioner, it has allowed other transportation network companies to include the same per minute charge in their respective fare structures,” Grab’s petition read.

The LTFRB has approved the accreditations of ride-hailing firms Hype Transport Systems Inc., Hirna Mobility Solutions Inc., Go Lag, Owto and MiCab Systems Corporation following the halt of the operations of Uber as a result of its acquisition by Grab last month.

According to Grab, the Board has approved the fare structures of these new TNCs allowing them to impose per minute charges to their riders.

The suspension will enable drivers and operators belonging to the common supply base which was imposed by the LTFRB to transfer to other TNCs as they are allowed to impose per minute charges, the firm said.

“It is clear that members of the Honorable Board who issued the order suspending the per minute charge of the petitioner have caused undue injury and prejudice to the petitioner,” its petition read.

The firm also said that the filing of a motion for reconsideration will render the LTFRB’s suspension order not executory.

“Since the filing of the Motion for Reconsideration by the petitioner on April 20, 2018 has the effect of staying the April 19, 2018 order, petitioner then has the legal authority to resume the imposition of the P2-per-minute charge pending the resolution of the motion,” Grab said.

The firm has said that it has the authority to formulate their own fare structures in accordance with the Department Order 2015-11 of the then Department of Transportation and Communications (DOTC).

The LTFRB has suspended Grab’s per minute charge following the allegations raised by PBA Partylist Rep. Jericho Nograles that Grab is illegally charging PHP2-per-minute for their rides, on top of its flagdown rate of PHP40 and charging PHP10 to PHP14 per kilometer.

Grab should refund around PHP 1.8 billion to its customers because of the alleged overcharging, Nograles added. (PNA)