A TRANSPORT network company (TNC) has denied a claim by the Land Transportation Franchising Regulatory Board (LTFRB) that it has earned millions of pesos from its vehicle “sharing” business.
“Grab Philippines does not make a single peso from its 20% commission on rides. What we make in commissions is returned more than two-fold as incentives to drivers and promos to passengers,” Grab said in a statement on Wednesday.
“We are operating at a loss and have been from the start. All payment for transport network vehicle service (TNVS) applications go to legal fees and filing. But even for those that have been granted Provisional Authority (PA) with our help, thousands have not paid the fees and we just covered these expenses for them,” Grab added.
Aileen Lizada, LTFRB spokesman, said that Grab was estimated to be earning P60 million a month in commissions.
Grab said the company was still operating on investment money.
“At some point, Grab will begin to aim for profit, but that time is not now, and it will never take advantage of our drivers or passengers,” Grab said.
“We have invested billions of pesos in the country to provide not only a start-up business for our partners, but more importantly to give commuters a safe, reliable, and convenient mode of transportation,” it added.
The LTFRB has reprimanded TNCs Grab and Uber for allowing drivers who have not secured Certificates of Public Convenience or PAs from the LTFRB to operate.
In response, the LTFRB fined the two companies P5 million each for failing to comply with the rules and regulations.
On Tuesday, Uber paid the P5-million fine while Grab is scheduled to pay this Wednesday.