LTFRB mulls suspending TNC accreditations over 'minimum fare'

ABS-CBN News

Posted at May 30 2018 09:07 AM

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MANILA - A Department Order allowing transport network companies to set their own fares without conducting any public hearing has put the Land Transportation Franchising and Regulatory Board in a bind following the discovery of ride-hailing firm Grab's P80 minimum fare.

Lawyer Aileen Lizada, LTFRB board member, said the P80 minimum fare for Grab Car and P125 minimum fare for Grab Premium were never mentioned in any of the documents the company submitted to them.

The board, Lizada said, is now confused because they also found out that a Department Order in 2015 allows transport network companies to set their own fares without conducting any public hearing.

"Ang nakalagay sa department order, 'The LTFRB will continue to accredit TNC while awaiting guidance from Congress.' Honestly nangangapa kami dito," she told DZMM, adding that new TNC applications have new designs they are not familiar with.

"Ano na ba talaga ang guidance ng Congress sa amin? Kasi ang alam lang namin ride-sharing. Kaya nga sinasabi ko na sa board, 'Can we put a suspension muna sa accreditations of the TNCs?" she added.

Grab Philippines head for public affairs Leo Gonzales earlier explained that the minimum fare is for trips less than 3 kilometers. "You have to consider also the driver who has to go from wherever he's at to your area," he said.

Gonzales added that only a small percentage of riders are affected by the minimum fare because most of them book trips farther than 3 kilometers.