Grab PH slapped with new fines of P16-M for overcharging, driver cancellations

Marje Pelayo   •   December 18, 2019   •   284

MANILA, Philippines – Transport network vehicle service (TNVS) company Grab Philippines is facing new fines worth P16 million for exceeding driver cancellations and overcharging.

Because of these reasons, the Philippine Competition Commission (PCC) ruled that Grab violated its pricing commitment to its clients.

“Grab should pay P14.5 million after its price surges went beyond the cap set by regulators, and P2 million for exceeding the allowed driver cancellations to 7.76% instead of the committed 5%,” the PCC said.

In response, Grab Philippines said it acknowledged the findings of the PCC but argued that the lack of drivers to service the growing commuter demands, coupled with the worsening traffic situation, commonly resulted in driver cancellations.

The ride-hailing company promised to refund the total computed administrative penalty of P14.15 million through GrabPay credits of those passengers who took Grab rides from May 11 to August 10, 2019.

Grab will then pay PCC the remaining P2 million.

In November, PCC asked Grab to pay over P23 million pesos for overcharging. – MNP (with details from Joan Nano)

LTFRB to review, monitor Grab’s fare setting

Robie de Guzman   •   November 28, 2019

MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday said it will review the fare setting of ride-hailing firm Grab Philippines after the Philippine Competition Commission (PCC) imposed a fine on the company for overcharging.

In a statement, the LTFRB said the P23-million fine imposed on Grab PH was due to the firm’s failure to follow through a voluntary commitment it made with the PCC and was not related to the agency’s fare structure guidelines.

“To put it in proper context, the fine issued by PCC in its Decision recently rendered pertains to the failure of Grab to fulfill its commitment to PCC as embodied in Grab’s Undertaking which it voluntarily submitted to PCC. It has nothing to do with LTFRB’s fare structure.” LTFRB Board Member Engr. Ronaldo Corpus said.

The LTFRB met with the PCC on Monday to discuss the fine imposed on Grab.

The agency said a review will be conducted to monitor Grab’s fare setting “in order to determine any violation on the existing fare structure issued by the Board.”

Under LTFRB’s Memorandum Circular 2019-036, transport network vehicle services (TNVS) were ordered to charge the following fares: car sedans shall charge a flagdown rate of up to P40 with additional fare of P15 per kilometer; up to P50 for premium AUV/SUV with additional fare of P18 per kilometer; and up to P30 for hatchbacks/sub-compact vehicles with P13 additional charge per kilometer.

The LTFRB also allowed TNVS companies to charge a P2 per minute travel time and 2x pricing surge.

The PCC on Nov. 18 slapped Grab PH a total fine of P23.45 million and ordered the firm to return to its passengers some P5 million in overcharges.

Grab PH earlier assured to obey the antitrust watchdog’s order.

The LTFRB said it remains committed to its mandate of providing a transparent, accountable, safe, and timely service to the riding public.

“The agency shall continue to work closely with the PCC regarding this issue,” it added.

Grab riders to get refund of P1 to over P100 after PCC order

Robie de Guzman   •   November 22, 2019

MANILA, Philippines – Grab Philippines assured on Friday that passengers who booked a ride from February to May 2019 will get a refund as ordered by the Philippine Competition Commission (PCC) for breaching its pricing commitments.

Grab Philippines President Brian Cu said in a news briefing that the P5.05 million refund that the PCC had ordered will cover around 3 million riders.

The PCC on Monday slapped Grab PH a total fine of P23.45 million for breaching its pricing commitments to the agency.

“Grab will abide by the PCC’s order to having pay the P23.45 million fine, P5.05 million of which will go to our consumers,” Cu said.

He added the refund will range from less than P1 to over P100 and would depend on the number of trips they booked during the period covering the penalty.

“If you take P5 million over 3 million, the average that a passenger would get is around P1.50. There are some that will get below a peso. There are others who will get over a P100. Depende po ‘yon kung magkano, kung gaano karaming trips tinake niya,” he explained.

Cu said they are eyeing to release the refund in the following weeks, and that affected passengers would be informed prior to the release.

In the same press conference, Cu also maintained that there was no overcharging and that Grab was compliant with that transport fare matrix of the Land Transportation Franchising and Regulatory Board (LTFRB).

“So, I just wanna clarify na hindi po nangyari ‘yong overcharging. Nagkaroon po ng deviations doon sa fare in range,” he said.

Cu said the procedure for the refund has yet to be announced.

He also assured that Grab will release the guidelines in its social media accounts and mobile app at least five days before the refund.

Likewise, Cu said the fine will not be passed to its passengers and drivers as they have contingency funds for such cases. – RRD (with details from Correspondent Asher Cadapan Jr.)

Lawmaker seeks PCC probe on abusive rice importers

Maris Federez   •   September 4, 2019

A group of farmers has launched their complaints at Tuesday’s Senate hearing on the effect of the rice tariffication law on the agricultural sector.

They claimed that with the arrival of imported rice, the price of palay has been severely affected resulting in a significant loss.

“Magkano po ang ibinaba, 2 pesos, 4 pesos, where is the 7 pesos drop? Papaano ang palay, ang palay bumagsak na rin,” said Leonardo Montemayor, the chairman of the board of the Federation of Free Farmers.

The Department of Agriculture (DA) said, to address this concern, they have offered loan assistance to small farmers.

“Maaring kaunti po , pero makakatulong po na P1.5 billion na immediately ipinamahagi po natin bilang pautang,” explained DA Usec Ariel Cayanan.

Senate Committee on Agriculture and Food chairperson Cynthia Villar said she seeks to have the distribution of the Rice Competitiveness Enhancement Fund (RCEF) under the Rice Tariffication Law to be closely monitored.

“Yung implementation ng RCEF, tututukan ko po yan, in fact I want it computerized para nalalaman natin kung ano yung mga bayan na sinasabi nilang binibigyan,” Villar said.

Senator Francis Pangilinan, on the other hand, wants the Philippine Competition Commission to investigate the alleged abuse by rice importers.

“We ask the Philippine Competition Commission to investigate the existing rice importers if they have taken advantage of their collective dominance, dahil ang nakikita natin , bumaba ang presyo ng bigas, pero maliit lang,” Pangilinan said.

The rice tariffication law provides the allocation of P10-B fund for the RCEF as assistance to farmers.

Pangilinan, however, wants a separate fund of another P10-B be given directly to rice farmers.

The Bureau of Customs (BOC) reports said the rice tariff that the agency has collected since March has reached around P9.1-B.  (from the report of Nel Maribojoc) /mbmf


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