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Grab hit with new fine in the Philippines for overcharging customers

Grab said its fares are compliant with regulations in the Philippines but respects the decision.

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Grab said today that it would refund a total of PHP 14.1 million (USD 278,000) to the GrabPay wallets of passengers in the Philippines after the country’s competition watchdog accused the ride-hailing major of overcharging passengers.

According to local media reports, the Philippines Competition Commission (PCC) ordered Grab Philippines to also pay an additional fine of PHP2 million (USD 39,480) due to many driver-initiated ride cancellations this year. This amount will be paid to the commission directly.

This was part of a monitoring process that the PCC started in August 2018.

According to Grab’s statement, the administrative penalty will be disbursed to passengers who took Grab rides from May 11–August 10 this year. Grab also said that its fares are compliant with the Philippines’ Land Transportation Franchising and Regulatory Board requirements but would still respect the decision and process the disbursement.

Grab noted in its response to the PCC that as a platform, the pricing will “still be influenced by factors such as lack of supply, and the traffic situation”.

With a grip on Southeast Asia, Grab has been facing with similar administrative fines in other countries. Most recently, in Malaysia, where it first got its start in 2012 as MyTeksi, Grab was ordered to pay a USD 20 million fine for “abusing” its dominant position in the ride-hailing market.