The Philippine Competition Commission (PCC) has given Grab Philippines a month to provide P19.3 million in refunds to eligible users after discovering that passengers have claimed less than a fourth of the entire amount as of June 2021.
According to the competition watchdog, Grab passengers have only claimed 24.1 percent, or P6.15 million, of the entire P25.45 million penalties that the PCC ordered to be remitted to Grab customers, based on compliance reports for earlier penalties.
The PCC ordered Grab until April 22 to restore the remaining funds, which it stated should be credited to users’ GrabPay Wallets promptly and without requiring any action.
“The ride-hailing app required additional steps for passengers to claim the fund, contributing to the low uptake,” it said.
The PCC previously ordered Grab to refund P5.05 million in overcharges and P14.15 million for violating voluntary pledges in 2019 and P6.25 million in 2020 due to pricing concerns.
“The penalties are in the form of a refund to remind Grab that every pricing or booking violation committed against passengers shall be paid back to passengers. Grab should immediately release the refunds and continue to adhere to its commitments,” PCC chairperson Arsenio Balisacan said.
Grab given a month to return ‘unclaimed’ P19.3 million to passengers
Grab announced voluntary pledges in 2018 as part of its takeover of then-rival Uber Technologies, which included pricing, fare transparency, service quality, and upgrades, among other things.
“The PCC remains steadfast in monitoring Grab’s commitments to temper the firm’s dominance in the ride-hailing market. These measures are in place to prevent Grab from exercising monopolistic behavior due to its unchallenged market power,” Balisacan said.
“Through the years, the commitment measures are meant to be temporary in disciplining Grab while waiting for the market to mature with new major players. A more permanent pro-competition solution here is to open the market to more Transport Network Companies that can truly rival Grab on the same level,” he added.
Grab currently operates in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, and Vietnam. It is Southeast Asia’s first decacorn and the most prominent technology startup.
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