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Grab ordered to explain P2 per minute charge | Tempo

Grab Philippines Public Affairs head Leo Gonzales said in a statement that they are “allowed” to set its own fares with the guidance of the regulating body.

“Department Order 2015-011 allowed TNCs to set its own fares with the oversight of the LTFRB. In June 2017, Grab, upon review of its pricing structure, initiated per minute pricing of P2. This was integrated to the existing per km charges and is not added to the upfront fares,” Gonzales explained.

He added that the per-minute charge was implemented for their partner-drivers to have a “great chance of making ends meet and supporting their needs” despite of everyday congestions on the road.

Gonzales said that they informed the LTFRB about their changed fare structure which they presented during one of the Technical Working Group meetings in July 2017.

“During times when questions were raised about fares in certain trips, we would always back compute and provide the basic formula for the same; including the per minute charges,” he said.

The issue will be discussed during a hearing set by the board on April 17, Tuesday, at the LTFRB office in Quezon City.

During a special board meeting on Wednesday, the LTFRB has ordered Grab to lower its surge price from x2 to x1.5 amid the controversies of the “illegal” per minute charge thrown at them.

After Grab acquired rival Uber’s operations in the Southeast Asia, TNVS riders complained about the former’s higher price surge which, according to Grab Philippines country head Brian Cu, was due to lack of drivers.

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Grab ordered to explain P2 per minute charge | Tempo – The Nation’s Fastest Growing Newspaper.

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