(Eagle News)–The Land Transportation Franchising and Regulatory Board has ordered Grab Philippines to explain the deactivation of around 8,000 of its transport network vehicle service units for their failure to secure provisional authority to operate.
The order was contained in a show-cause order issued to the transport network company, which was also ordered to appear before the Board on June 11, or a day after Grab said the units would have been already deactivated.
According to the LTFRB, in the first place, it regularly issues a list of TNVS that applied for accreditation to Grab, which means the company should have deactivated those that did not at all apply for a Certificate of Public Convenience months ago.
The LTFRB added that as of today, more than 5,000 provisional authorities issued by the LTFRB remain unclaimed.
Apart from the deactivation of 8,000 units, Grab Philippines will also have to answer complaints on its failure to implement the 20% discount for PWDs, senior citizens and students under Memorandum Circular 2011-004, the LTFRB said.
It added Grab should also explain if there is a mechanism for Grab to apply the required discount after a completed ride in compliance with the show-cause order.