Grab And Uber To Pay 5M Each, Penalized By LTFRB

Grab and Uber were penalized by the Land Transportation Franchising and Regulatory Board (LTFRB) with P5 million. This report came after a hearing that was held on Tuesday, July 11. Although a significant amount will be taken from them, they can rest assured that their accreditation has been granted.

Grab and Uber are the two biggest ride-hailing service in the Philippines. A report by CNN says Grab’s accreditation expired on July 3 while Uber’s accreditation is due to expire in August. The LTFRB requires that a Transportation Network Company requests for renewal before being allowed to operate.

LTFRB grants Grab and Uber accreditation, Each set to pay P5M

On July 11, the scheduled hearing for Grab and Uber’s accreditation took place. On Twitter, CNN reported that both companies’ accreditation were granted by LTFRB fined them P5M each for violations. Apparently, they are being fined for letting drivers drive without permits and violating terms and conditions as TNC.

News5 Aksyon also tweeted that LTRFB board member Atty. Aileen Lizada said the P5M amount was small. She mentioned that 28k colorum vehicles should be fined P120k each. If that will be computed, that would amount to around P3 billion. It was also reported that Lizada confirms there are 50,000 Grab and Uber units engaged in illegal colorum operations.

The Philippines Star tweeted a statement from Grab saying they are happy with the Board’s decision. They said their violations were risks that they had to take as a business. DZBB Super Radyo also gave updates on how Grab would handle the P5M fine. Grab said they will not give the burden of this payment to their customers and clients.

Netizens on Twitter could now help but share what they feel about this P5M fine. One user said the amount was not enough. One was curious and asked if LTFRB also oversees bus companies and if so, where are their P5M fines as well. Another wonders why Grab and Uber are such favorite targets of the LTFRB. Lastly, a tweet said LTFRB cannot cancel Uber and Grab’s permit since LTFFB employees and officers also take Grab and Uber everyday.