Tulfo to Grab: Stop charging ₱50 cancellation fee

Metro Manila, Philippines — Senator Raffy Tulfo on Tuesday urged ride-hailing company Grab to stop charging a ₱50 cancellation fee on passengers, while its drivers frequently cancel bookings without paying penalties.

“Dapat alisin mo na ang pagmumulta ng ₱50. Kung may karapatan ang driver magcancel, dapat may karapatan din ang consumer magcancel. It should go both ways,” Tulfo, chairperson of the Senate committee on public services, said in a public hearing.

[Translation: You should remove the ₱50 penalty. If the driver has the right to cancel, the consumer should also have the right to cancel. It should go both ways.]

“Example ko sayo, magbubook ang isang pasahero sa Grab, sasabihin we’ll be there in 20 minutes. Pagdating ng 20 minutes, papaextend ng another 10 minutes. Naextend, so naging 30 minutes na and then all of a sudden icacancel. Bakit ganon? Maraming beses nangyari yan, so many complaints,” he added.

[Translation: Here’s an example: A passenger books a Grab ride, and the driver says, "We'll be there in 20 minutes." When 20 minutes have passed, the driver extends it by another 10 minutes. It gets extended, so it becomes 30 minutes, and then all of a sudden, they cancel. Why is that? This has happened so many times, and there have been numerous complaints.]

Gregorio Tingson, Grab head of public affairs, said cancellations should only be a last resort and urged passengers to report such incidents for proper investigation.

“Paumanhin na ho dun sa mga nagcacancel po na drivers. Pag ganito po yung kaso at syempre po pag narereport or naeevaluate po siya, nabababaan po yung kanyang stars (We apologize for the drivers who cancel bookings. In cases like this, if it’s reported and evaluated, their ratings are lowered),” Tingson said.

He said a driver’s account could be suspended for repeated unjustifiable cancellations. However, Tulfo insisted on removing the ₱50 cancellation fee charged to passengers.

Tingson said charging a cancellation fee is in line with the regulations set by the Land Transportation Franchising and Regulatory Board (LTFRB).

But LTFRB Chairman Teofilo Guadiz said passengers can file complaints with the agency.

“The violation is refusal to convey dahil tinanggap mo yung pasahero and then ayaw mo siyang dalhin sa kanyang destinasyon, if a complaint is filed and we have cases of this. We sanction the driver with a ₱5000 penalty,” Guadiz said.

Tulfo urged Grab to add an announcement in its app informing passengers that they can file complaints in such cases, as a deterrent for rogue drivers.

“Yes, Mr. Chair, we will emphasize this in the app,” Tingson said.

Price surge, 20% discount

During the hearing, Grab was also questioned about its price surge, but Tingson explained that 80% of the proceeds go to the drivers as an incentive for dealing with heavy traffic.

Tulfo also raised concerns about drivers refusing to accept bookings from students, senior citizens, and persons with disabilities to avoid covering the 20% discount.

Guadiz responded that covering the discount is part of Grab's franchise agreement as a transport network company, and failure to comply may result in the suspension of its operations.

However, Tingson cited another memorandum circular stating that it should be the responsibility of the driver. He added that Grab will coordinate with the LTFRB on the matter.