Senior Citizens Party-List Rep. Rodolfo Ordanes has submitted a resolution calling for an investigation into the improper implementation of senior citizens and persons with disabilities (PWD) discounts by Grab and other ride-hailing and food delivery companies.
In his House Resolution No. 2134, Ordanes also wants to look into claims that Grab and other Transportation Network Vehicle Service (TNVS) shifted to their drivers the burden of shouldering the 20 percent discount for senior citizens and PWDs.
According to Ordanes, these policies are a clear violation of the Land Transportation Franchising and Regulatory Board (LTFRB) policies.
“This conduct by ride-hailing and food delivery applications is utterly deplorable, as it constitutes criminal and exploitative behavior,” Ordanes said, adding that these companies must be suspended if found guilty.
During the hearing of the Committee on Public Services, Gregorio Ramon Tingson, Grab’s Head of Public Affairs, confirmed that their drivers shoulder the 20-percent discount given to persons with disabilities, senior citizens, and students.
“Alinsunod po kasi sa batas, ang driver po,” Tingson said, referring to the Memorandum Circular 2018-004 issued by the Land Transportation Franchising and Regulatory Board (LTFRB).
Teofilo Guadiz, LTFRB chairperson, rebutted Tingson’s claim, stating that under their franchise, the Transportation Network Companies (TNCs) should shoulder the 20-percent discount.
Guadiz said the LTFRB will investigate by getting statements from Grab drivers and an explanation from Grab regarding this practice. He warned that if violations are confirmed, Grab’s franchise could be canceled.
“May I request a statement from the driver? We will give them a show cause, and if the evidence warrants it, we will issue an appropriate suspension of their franchise,” Guadiz said.
Meanwhile, the Philippine Competition Commission (PCC) will investigate the alleged double franchising of Grab Philippines in the motorcycle ride-hailing industry.
The issue of double franchising surfaced during the Senate Committee on Public Services when the topic of Grab’s acquisition of Move It and the operation of its Grab Bike service was discussed.
A motorcycle organization argued that Grab Bike and Move It should operate as a single entity, given that they have one owner.
A PCC representative committed to releasing the result of the investigation before the Senate adjourns on Dec. 21 for its Christmas break
The Lipa City Council recently discovered Grab Bike’s operation in the city without any permit to operate from the local government, making it illegal or “colorum.”
During the Senate hearing, the Land Transportation Franchising and Regulatory Board (LTFRB) questioned Move It for its excessive recruitment of riders despite the agency’s order to stop recruiting members for motorcycle taxi companies.
