‘Still operating on investment money’
TRANSPORT network firm Grab Philippines denied on Wednesday the claim made by the Land Transportation Franchising and Regulatory Board (LTFRB) that the company has earned millions of pesos from its ride-sharing services.
“Grab Philippines does not make a single peso from its 20-percent commission on rides. What we make in commissions is returned more than twofold as incentives to drivers and promos to passengers,” Grab said in a statement.
“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.
Earlier, LTFRB spokesperson Attorney Aileen Lizada said that Grab is estimated to be earning P60 million a month from commissions from its peers.
Grab said that their company is 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 transport network companies (TNCs) Grab and Uber for allowing the operations of drivers who have not secured Certificates of Public Convenience or PAs from the LTFRB.
The government agency slapped a P5-million fine each on both companies for failure to comply with LTFRB rules and regulations.
Uber paid the P5-million fine on Tuesday while Grab was scheduled to make the payment yesterday, Wednesday, July 19.