Show-cause order issued to Grab

By Denise A. Valdez, Reporter

THE LAND Transportation Franchising and Regulatory Board (LTFRB) said it has issued to Grab Philippines (MyTaxi.PH, Inc.) a show-cause order to justify its pronouncements about the removal of about 8,000 drivers from its platform.

“The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a Show Cause Order (SCO) to MyTaxi.Ph,Inc. (Grab) today, 06 June 2019, on the account of the deactivation of about 8,000 units,” a statement by the government regulator said. “Grab is set appear before the LTFRB Board on 11 June 201 to explain and elucidate the agency and the public regarding their decision and statement.”

“The LTFRB regularly sends a report to Grab containing the list of drivers who apply for LTFRB accreditation. Drivers who do not apply at all for a Certificate of Public Convenience (CPC) should have already been deactivated by Grab per LTFRB order issued months ago,” LTFRB also said.

Last Monday, Grab said it is prepared to remove about 8,000 drivers from its platform due to the lack of certification from the LTFRB to operate as a transport network vehicle service (TNVS).

The LTFRB opened the application for 20,000 TNVS slots in December, which is set to close by today, June 7. Grab said it anticipates about 8,000 of its drivers won’t make the deadline and are therefore set to be removed from its platform.

Aside from the issue of drivers supposedly removed “months ago,” the LTFRB said it also calls on Grab to explain complaints about the company’s supposed failure to honor discounts for persons with disabilities, senior citizens and students in its platform. The discount is required by the LTFRB through Memorandum Circular 2011-004.

The regulator said it wants to know “if a mechanism exists for Grab to remedy the failure to apply the required discount after a completed ride as part of their compliance….”

Grab was sought for comment as of this reporting.