LTFRB orders Grab PH to pay P10 million in penalties for overcharging customers

Image from Grab Philippines
  • LTFRB imposed a P10-million penalty on Grab Philippines for overcharging its passengers
  • The Board also ordered the ride-hailing service to reimburse the passengers through rebates
  • The Board’s order will take effect 20 days after the decision has been made final

The Land Transportation Franchising and Regulatory Board (LTFRB) ordered Grab Philippines to pay P10 million in penalties for overcharging its customers.

According to an ABS-CBN story dated July 10, 2018, the LTFRB also ordered Grab Philippines to reimburse its passengers through rebates “for allegedly charging P2.00 per minute of travel time without authority from the Board from June 5, 2017, to April 19, 2018, through rebates.

The rebate will take effect 20 days after the Board’s decision has been made final or when Grab Philippines starts implementing it.

Image from Grab PH

The company was also ordered to submit a compliance report a week after it completed the rebate.

Department of Transportation communications director Goddess Libiran said LTFRB’s order has been approved during a hearing on Tuesday, July 10.

Meanwhile, Grab Philippines’ country head, Brian Cu,  insisted on the legality of the collection of P2.00 per minute of travel time.

On Facebook, Cu issued the following statement:

“We stand by the legality of the P2 per minute fare component. We would like to reiterate that it is legal, pursuant to the DO 2015-011.

We are currently studying our legal options regarding LTFRB’s order. But no matter how we decide to move forward from this, be assured, Grab will stay.

We would like our driver-partners and passengers to know that we are committed to continuing Grab’s pursuit towards a better future for the transportation industry.

We fully commit to ensuring quality of service to passengers and fair income opportunities for our driver partners.

To our partners and passengers, thank you for your continued loyalty and support. We are in this together. Grab is here for good.”