CMMD exposes Grab’s violations, multi-million penalties

CMMD exposes Grab’s violations, multi-million penalties

/ 10:42 AM October 22, 2023

The Congressional Committee on Metro Manila Development (CMMD) recently submitted a report to House Speaker Martin Romualdez detailing the alleged violations committed by ride-hailing firm Grab and the multimillion-peso penalties by government regulating agencies which the company has yet to fully settle.

CMMD chairman Rolando Valeriano, in a 14-page report dated Sept. 5, 2023, particularly mentioned Grab’s alleged “backdoor entry” into the motorcycle taxi “space” last year by acquiring Move It, one of the vetted participants in the Department of Transportation (DOTr’s) pilot study on the viability of MC taxi operations in the country that started in 2019.


The CMMD intended to conduct a motu proprio inquiry, in aid of legislation, on the entry of Grab, the sole player in the Transport Network Vehicle Service (TNVS) in the Philippines, into the MC taxi industry, after complaints of irregularities filed by various transport and commuter groups including Digital Pinoys, a network of digital advocates and Lawyers for Commuters Safety and Protection (LCSP), a group that helps provide legal representation on transportation sector issues.

In its pilot study, the DOTr granted only three MC taxi operators–Angkas, Joyride, and Move It–in the program and granted them provisional authority to operate. Grab, which is in the TNVS business, was not yet on the MC taxi “space.”

However, last year, Grab surprisingly appeared into the MC taxi scene after it reportedly secretly acquired Move It by skirting proper procedure and approval by concerned government regulating agencies. The matter triggered various negative and harsh reactions from various sectors, including the CMMD.

Apart from the controversial acquisition of Move It and its instant entry as a player in DOTr pilot study, which is yet to be resolved by concerned government agencies, Grab is also accused of “overcharging and shortchanging either or both their partner-riders and passengers.”

Relative to these controversies, the Philippine Competition Commission (PCC) has already penalized Grab a total of P63.7 million since 2018 for violations of its price and service quality commitments but the firm has not still fully completed the payment, while the Land Transportation Franchising and Regulatory Board (LTFRB) also penalized Grab P10 million on related infraction.

According to the CMMD report, Grab’s price-surges, surcharges, tips, and other fees in its app for its services undermine the LTFRB’s fare matrix and fare-hike policies.

A few weeks back, Grab was also embroiled in the LTFRB corruption controversy after it was accused of bribing an official in exchange for its franchise resulting in the suspension by Malacanang of the LTFRB official.

The other day, hundreds of Grab delivery riders held a mass protest along Tomas Morato in Quezon City accusing Grab of unfair labor practices and unjust cuts in their pay. The riders were also demanding the stoppage in the implementation of the new fare matrix which could further reduce their earnings.

Observers, who were also closely watching rumors that Grab is planning to buy LalaMove, another major moto delivery player, commented that it seems that the culture of corruption is also besetting Grab management not only in LTFRB.


TAGS: BrandRoom, Grab Philippines

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