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Grab overpricing admission vs short trips a bane for passengers and drivers

Digital Pinoys

A network of digital advocates said that Grab is putting its partner drivers and passengers in a disadvantageous position after the TNVS giant admitted that it intentionally overpriced its booking charges “to discourage short trips”.

Digital Pinoys national campaigner Ronald Gustilo said that Grab passengers and drivers will end up getting the short end of the stick due to the imposition of the overpriced base fare and additional stop base fare.

“This might explain as to why many accredited drivers opt not to take trips anymore. Grab is deliberately making it difficult for drivers to hit their incentive targets by overpricing its base fare to discourage short trips. Is this their way to show gratitude to drivers? by depriving them of their chance to hit their incentive?”

Gustilo said that with the imposition of a higher that allowed base fare, regular patrons of TNVS may opt not to book anymore and will instead choose to use other modes of transportation.

“If Grab passengers can’t afford their services anymore, what will happen to the drivers? They are at the losing end of these grand scheme to overcharge passengers.”

It can be recalled that the Land Transportation Franchising and Regulatory Board issued a show cause order against Grab Philippines for charging 85 pesos base fare and an additional 40 pesos stop base fare. LTFRB-mandated flag down rate for TNVS is only 45 pesos. According to media reports, Grab Philippines said that it imposed a higher base fare than allowed to discourage short trips.

Gustilo said that Grab should be penalized for overcharging its passengers and creating a situation to discourage short trips which violates their accreditation.

“Imposing a higher base fare than what is allowed by the LTFRB is a violation. Deliberately creating a situation to discourage a passenger to book its services is another violation. We see it as two different violations and hope that LTFRB will also see the same. Ultimately, Grab should be penalized for both and return the overcharged amount to passengers as well.”

Gustilo is also urging the House of Representatives and the Senate to enact a TNVS law that will balance the interests of its stakeholders and protect passengers and drivers.

“We are hoping that due to the revelations surrounding the TNVS industry, a law that will safeguard passengers and drivers and will ensure balance between profit and service will be enacted soon.”

Reference: Ronald Gustilo, Digital Pinoys National Campaigner