The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered Grab to suspend its P2/min travel charge until it became legal.
According to Grab, they failed to inform the public about extra charges.
The suspension will take effect after they finished the investigation into the matter, LTFRB said.
LTFRB Chairman Martin Delgra III and board member Ronaldo Corpus signed the order.
“We thought it wise to temporarily suspend the P2/min charge,” Delgra said.
‘They should be told to return their “illegal collections,” which could amount to billions of pesos” Rep. Jericho Nograles said.
Nograles stated Grab’s extra charge on top of P40 flag down fee and the P10 to P14 rate per kilometer is illegal.
Brian Cu, Country head, said “There’s nothing illegal with failing to update the information” He believes that P2/min charge does not violate any law.
Grab explained that they implemented the extra charge for driver’s income. The ride-hailing service said it is all for the drivers, 80% goes to the driver while the remaining 20 is for their incentives.
