MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday said it will review the fare setting of ride-hailing firm Grab Philippines after the Philippine Competition Commission (PCC) imposed a fine on the company for overcharging.
In a statement, the LTFRB said the P23-million fine imposed on Grab PH was due to the firm’s failure to follow through a voluntary commitment it made with the PCC and was not related to the agency’s fare structure guidelines.
“To put it in proper context, the fine issued by PCC in its Decision recently rendered pertains to the failure of Grab to fulfill its commitment to PCC as embodied in Grab’s Undertaking which it voluntarily submitted to PCC. It has nothing to do with LTFRB’s fare structure.” LTFRB Board Member Engr. Ronaldo Corpus said.
The LTFRB met with the PCC on Monday to discuss the fine imposed on Grab.
The agency said a review will be conducted to monitor Grab’s fare setting “in order to determine any violation on the existing fare structure issued by the Board.”
Under LTFRB’s Memorandum Circular 2019-036, transport network vehicle services (TNVS) were ordered to charge the following fares: car sedans shall charge a flagdown rate of up to P40 with additional fare of P15 per kilometer; up to P50 for premium AUV/SUV with additional fare of P18 per kilometer; and up to P30 for hatchbacks/sub-compact vehicles with P13 additional charge per kilometer.
The LTFRB also allowed TNVS companies to charge a P2 per minute travel time and 2x pricing surge.
Grab PH earlier assured to obey the antitrust watchdog’s order.
The LTFRB said it remains committed to its mandate of providing a transparent, accountable, safe, and timely service to the riding public.
“The agency shall continue to work closely with the PCC regarding this issue,” it added.