Ever since Uber exited the Philippines, Manila’s denizens have increasingly relied on Grab to take them around the metro. However, complaints about the Singapore-based ride-hailing app’s services have become dime a dozen, ranging from its extremely high surge prices to the longer waiting time that it takes to book a vehicle. Now, Grab is involved in yet another controversy, this time over charging minimum fares.
Yesterday, the Land Transportation Franchising and Regulatory Board (LTFRB), the government body that regulates the operation of taxis, buses, jeepneys, and transport network vehicle services (TNVS), learned that Grab charges a minimum fare for trips shorter than three kilometers.
Rappler wrote that Congressman Jericho Nograles informed the LTFRB yesterday that Grab charges a minimum of PHP80 (US$1.52) for its sedans and PHP125 (US$2.37) for its six-seater vehicles.
LTFRB learned this during the hearing where Grab was supposed to convince the regulatory board to lift its suspension of the company’s PHP2 (US$0.038) per minute travel charge, wrote the Philippine Daily Inquirer.
The chairman of the LTFRB, Martin Delgra III was “visibly surprised,” according to Rappler.
Said Delgra: “Obviously, [we were] not [informed] insofar as the computation of minimum fare is concerned – compared to the base fare and in relation to the other factors to [sic] determine the fare.”
Grab Philippines’ head of public affairs Leo Gonzales defended the minimum fare.
He said in a report by ABS-CBN News: “You have to consider also the driver who has to go from wherever he’s at to your area.”
He also said that more passengers have become affected by the minimum fare due to the suspension of the PHP2 (US$0.038) per minute travel charge.
Gonzales reiterated that the company has no intentions to hide the minimum fare from its customers.
According to Rappler, the LTFRB will not suspend Grab’s minimum fares but will ask the company to clarify the issue.
