LTFRB suspends inDrive over alleged fare violations

The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday suspended the operations of new Transport Network Vehicle Service (TNVS) player inDrive over alleged violations.

This was confirmed by LTFRB spokesperson Celine Pialago-Vargas to reporters following a nearly two-hour hearing on the complaint filed by Lawyers for Commuters Safety and Protection (LCSP) president Ariel Inton against inDrive.

In a show cause order dated January 8, the LTFRB directed inDrive to explain why its accreditation as a transport network company (TNC) should not be revoked or cancelled for allegedly “allowing haggling of fares.”

Pialago-Vargas did not provide further details, as the order is still being drafted as of this posting.

Department of Transportation spokesperson Jonathan Gesmundo, citing LTFRB Chairman Teofilo Guadiz III, also confirmed that the agency issued a cease and desist order against inDrive.

Guadiz, in a statement issued late Tuesday, said InDrive —operated by RL Soft Corporation— has been temporarily suspended until it complies with the LTFRB’s fare rates for TNVS.

The halt order begins January 23 “until it presents proof of compliance, giving them 15 days to comply.”

GMA News Online reached out to InDrive for comment, but no response has yet been received.

“The suspension comes in response to alleged violations concerning the haggling of fares, a clear breach of the terms and conditions outlined in its accreditation as a Transportation Network Company,” Guadiz said.

Guadiz noted that haggling of fares not only goes against the principles of transparency but also jeopardizes the welfare of both passengers and drivers.

“We take these allegations seriously and are conducting a thorough investigation to determine the extent of the violation,” the LTFRB chief said.

In a phone interview, LCSP’s Inton said that during the hearing, which he attended, the LTFRB found that inDrive made a clear violation of the fare matrix for TNVS by allowing “fare haggling.”

Inton explained that passengers of inDrive were allegedly asked to make an offer first to the driver, then negotiations or “contracting” of the fare will begin before a booking can be completed.

The LCSP president added that this practice is not in the fare system of LTFRB for TNVS, which provides a flag-down, per-distance, per-minute, and surge pricing scheme.

“We remind all Transportation Network Companies that adherence to the terms and conditions of accreditation is essential to maintaining the integrity of our public transportation system. The LTFRB will continue to enforce policies that prioritize the safety, fairness, and efficiency of transportation services for the benefit of the commuting public,” Guadiz said.

The LTFRB’s decision came more than a month after it accredited inDrive as a TNC. 

InDrive earlier planned to activate its application in five initial cities: Bacolod, Baguio, Iloilo City, Cagayan de Oro, and Butuan.

Outside the Philippines, inDrive has a presence in over 700 cities in 45 countries, including Indonesia, Malaysia, and Thailand.  —VBL/RF, GMA Integrated News