LTFRB suspends Grab’s P50 cancellation fee

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) suspended yesterday the P50 cancellation fee that would have been imposed next week by ride-hailing firm Grab on its customers.

LTFRB Chairman Martin Delgra III said they came up with the decision following a dialogue with representatives of Grab and other transport network companies (TNCs) on Monday.

“It’s suspended pending review,” he said.

Delgra explained that the fee being imposed by Grab is not part of the fare structure, but falls under “other charges” regulated by the LTFRB.

He said they took into consideration the LTFRB’s mandate to protect the riding public.

“The agency is mandated to ensure that passengers are charged reasonable fares,” he said.

Grab imposed the P50 penalty to prevent cancellations by customers, with the amount going directly to the driver to compensate for the fuel cost in going to the passenger.

Drivers who ignore or cancel booking requests are removed from Grab’s platform for a temporary period.

In a statement, Grab public affairs manager Nicka Hosaka said the ride-hailing company and other TNCs have agreed to maintain the status quo requested by the LTFRB until the regulatory body issues guidelines on the cancellation policy.

Hosaka clarified they have not yet collected cancellation fees from Grab customers.

“No fees have been charged since the implementation of the policy was set to start next week,” she said.