LTFRB considers revoking Grab’s franchise over PWD, student, and senior discounts issue
Mike Manalaysay December 11, 2024 at 11:50 AM
QUEZON CITY — The Land Transportation Franchising and Regulatory Board (LTFRB) is weighing the possibility of revoking Grab Philippines’ franchise after allegations surfaced that the company shifted the burden of providing 20-percent discounts for persons with disabilities (PWDs), students, and senior citizens to its drivers.
The issue came to light during a Senate Committee on Public Services hearing, where a representative from Grab was questioned over frequent cancellations by drivers when passengers were eligible for discounts.
According to Saturnino Ninoy Mopas, spokesperson for TNVS Community Philippines, Grab previously shouldered the discounts but passed the responsibility to drivers six months ago. They require drivers to shoulder the discounts granted to senior citizens, PWDs, and students.
LTFRB Chairperson Teofilo Guadiz condemned the practice, stating it violated the agency’s Memorandum Circular by transferring the 20-percent discount to their drivers.
The LTFRB plans to gather statements from affected drivers and demand an explanation from Grab. Guadiz warned that if the violations are verified, the company’s franchise could be revoked.
This controversy adds to Grab’s existing legal troubles. The Philippine Competition Commission (PCC) disclosed during the hearing that Grab has been fined a total of ₱86.7 million since 2018 for fare-related violations, including ₱16.15 million for fare standards violations and driver cancellations.
Grab’s motorcycle ride-hailing service, Move It, is also under investigation following incidents of road accidents that resulted in injuries or fatalities among passengers.
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