The Land Transportation Franchising and Regulatory Board issued a show-cause order against Grab as the regulatory agency started its formal investigation on the TNVS giant's alleged violation of its accreditation.

Grab was directed to appear before the LTFRB on 6 December after the regulating body found out that its imposition of a minimum fare of P85 and an additional stop base fare of P40 upon booking in its platform are "being considered as violation of the terms and conditions of its accreditation as transport network company."

During a congressional hearing by the Committee on Metro Manila Development last week, committee member Marikina Representative Stella Quimbo, then in charge of the Philippine Competition Commission, said that Grab violated competition rules by "overcharging customers" despite commitments to regulators "they will not do so."

Quimbo said that Grab has a history of overcharging its customers and urged the PCC and other related regulatory agencies to investigate Grab for "abuse of dominance" given its substantial market share in the TNVS industry.

According to a local digital advocate group, Grab is also taking advantage of its surge pricing mechanism and it must be investigated by the LTFRB to make sure that the transport provider would not abuse the system.

The group added that despite Grab denials it is clear that the ride-hailing firm allegedly continues its unfair practice against its passengers, partner drivers, and delivery riders.