Grab ordered to reimburse P6.25 million to select passengers

MANILA, Philippines — Grab Philippines will reimburse P6.25 million to select passengers next week after incurring pricing violations from the Philippine Competition Commission (PCC).

The PCC directed Grab Philippines to release the said amount to select Metro Manila passengers who took the GrabCar service from Aug. 11 to Oct. 31, 2019.

Grab said only select GrabCar passengers in Metro Manila, with total fares of P488 from Aug. 11 to Oct. 31, 2019 would be eligible for the P1 reimbursement which they can claim through the Grab Rewards catalogue within the Grab app.

The company said those who are eligible for disbursement would receive an in-app notification in their Grab app on Feb. 9.

In compliance with the regulations of the Bangko Sentral ng Pilipinas, Grab said those who have completed the basic KYC (know your customer) process can directly redeem the amount which will be credited to their GrabPay Wallet accounts on Tuesday.

It said recipients who have not yet completed their basic KYC are required to complete this process prior to redemption.

Grab said it was informed of the PCC ruling in December last year.

Grab said it did not overcharge its passengers and its fares remain compliant with the fare matrix of the Land Transportation Franchising and Regulatory Board (LTFRB).

“The lack of GrabCar supply has been a challenge. During peak hours, there tend to be a lower number of available cars on the road servicing a higher number of passengers trying to book a ride. Drivers need to be encouraged to service passengers during this time, and be fairly compensated for their time spent on the busy roads servicing the passengers. Unfortunately, it is during such situations when our surge fares resulted in a breach of the maximum pricing threshold set by the PCC,” it said.

“While Grab’s fare remains compliant with the fare matrix of the LTFRB, this directive follows PCC’s findings that there were some pricing issues from Aug. 11 until Oct. 31, 2019 that need to be addressed,” the company said.

Grab said the passenger disbursement, as approved and directed by the PCC, is computed from the proportion of the total fare of the passenger incurred within the time period, multiplied by the total amount for disbursement.