Regulators probe Grab over ‘unapproved’ per-minute charge

Photo from ABS-CBN News.
Photo from ABS-CBN News.

Now that ride-hailing app Uber is no longer operating in the Philippines, all eyes are on Grab, the company that aced it out of the Southeast Asian marketplace. And it hasn’t taken long for regulators to turn up the heat.

Yesterday, just a day after Uber’s shutdown, Grab was probed by the government’s transportation regulatory board about its shift last year to an allegedly unapproved charge for their drivers’ time.

The hearing was prompted by a complaint from Rep. Jericho Nograles who questioned Grab’s decision to charge riders a PHP2 (US$.04)/minute fee.

Most taxis in Manila charge based on distance. Under Grab’s new system, however, drivers are paid even when they’re stuck in the capital’s notoriously bad traffic.

Land and Transportation Regulatory Board (LTFRB) Chair Martin Delgra III told reporters yesterday that while this fare change was discussed with them during a meeting last year, they were not informed when Grab would implement it.

According to Nograles, the change was implemented in June.

Grab Country Head Brian Cu defended the company’s move and said that at that time, they were not told that per-minute travel charges were not allowed.

During the hearing, he said that this change was done to benefit Grab drivers by providing them a stable income.

They want their drivers to make driving a “longtime career and not just a transit form of employment,” Cu said.

The LTFRB has been targeting ride-hailing apps since they surged in popularity.

In 2016, the board temporarily stopped accepting applications from Uber and Grab because of an oversupply in ride-hailing app vehicles.

In July, it also fined the two companies PHP5 million (US$95,916.66) each for allegedly allowing some drivers to operate without permits.

Uber was then suspended from operating in August for continuing to accredit drivers even after the LTFRB instructed them not to.

Apart from Nograles, Rep. Ciriaco Calalang urged the LTFRB yesterday to probe Grab about its increasing rates that started on Monday, when Uber officially shut down.

In a statement, Calalang said Grab was “behaving like a monopoly now” and that the LTFRB should require them to self-regulate.

“This chaotic situation cannot [and] must not be allowed to let commuter rights be trampled upon,” he said.

On Monday, the Philippine Competition Commission ordered Grab and Uber to explain the acquisition and why Uber was shut down even though they ordered that it continue operations while they are reviewing the deal.



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