Grab defends fare structure amid accusations of overcharging

By Aerol John Pateña


Dominant ridesharing firm Grab Philippines has justified its fare structure following a legislator's call for it to refund at least Php1.8 billion in alleged illegal charges.

Grab said its Php2 per minute charge was in accordance with the order of the then Department of Transportation and Communications (DOTC) in 2015 which allows transportation network companies (TNCs) to set its own fares with the oversight of the Land Transportation Franchising and Regulatory Board (LTFRB).

“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 pesos. This was integrated to the existing per km (kilometer) charges and is not added to the upfront fares,” Grab Philippines said.

“The per minute charges were implemented to ensure that despite serious congestion issues on the road on a daily basis, hardworking TNVS (transportation network vehicle services) drivers would have a greater chance of making ends meet and supporting their needs,” he added.

Grab has presented its business model; supply and demand models; and pricing structure in a meeting with the LTFRB on July 2017.