Grab drivers get P60 million in subsidies
MANILA, Philippines — Ride-hailing company Grab provided over P60 million in subsidies to its drivers following the suspension of its P2-per-minute charge, an official said yesterday.
Grab country head Brian Cu said they gave out the amount in a span of two weeks to their drivers to make up for the suspension of the P2-per-minute charge by the Land Transportation Franchising and Regulatory Board (LTFRB).
The LTFRB ordered the transport network company (TNC) to “reimburse” riders who were charged the fare.
The P2-per-minute charge accounted for around 15 to 20 percent of the passenger’s total fare when it was still being implemented. Grab receives an average of 20 percent of the ride.
Cu said they would exhaust all legal and administrative means to challenge the LTFRB’s decision, which they called unfair.
He said they are set to file a motion for reconsideration with the LTFRB before its order becomes final.
“We expected that the decision should have been in our favor because we did not do anything so it caught us by surprise,” Cu said in an interview.
The Grab head said they have not set up a mechanism for the rebate process, but they are planning to give it in the form of discounts.
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