LTFRB Urges Grab to Explain Alleged Overcharge Fare

LTFRB Seeks Explanation From Grab Over Alleged Overcharge Fare

The Land Transportation Franchising and Regulatory Board (LTFRB) is urging the ride-hailing company Grab to explain alleged overcharge fare.

According to the LTFRB, the transportation network company Grab Philippines is allegedly charging an P85 minimum base fare even though the agency has not approved it. According to the LTFRB, they gave Grab Philippines five days to submit data on the frequency with which they charged a minimum base fare of P85.

“The Board specifically wanted to see how Grab arrived at this fare rate and asked the company to present their computation on ‘surge’ fees during the next hearing,” LTFRB said. 

The minimum fare for sedan-type transport network vehicle service (TNVS) is 45, 55 for AUV/SUV-type TNVS, and 35 for hatchback-type TNVS, according to the LTFRB fare matrix released in September 2022. Based on the report, LTFRB chairman Teofilo Guadiz III stated that a hearing on the issue of fare increases was held on Thursday.

He stated that there will be no hearing on the matter because the agency has requested that TNVS submit a position paper so that they can make a decision in the first week of February. Despite higher fares, Grab, the market leader among booking apps, has become a viable alternative to taxis and public transportation.

Commuters were frustrated during the holiday season due to high demand, with some having to wait for hours for a ride. Grab stated in a January 6 release that the shortage of available rides was caused by “mobility standstill,” which most likely means heavy traffic, as well as the economic effects of the pandemic, which caused some driver-partners to miss payments on their vehicles and others to seek better pay in other fields.

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