The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended a new Transport Network Vehicle Service (TNVS) player inDrive over alleged violations.
Before the cease and desist order, the company was planning to launch its application in five cities in the Philippines, with a presence in over 700 cities in 45 countries, including Indonesia, Malaysia, and Thailand.
LTFRB – inDrive Suspension
Following a hearing on a complaint filed by Lawyers for Commuters Safety and Protection (LCSP) against the TNVS player, the LTFRB issued a show cause order directing inDrive to explain alleged fare haggling. The LTFRB has also issued a cease and desist order, temporarily suspending inDrive until it complies with fare rates for TNVS.
“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.”
Teofilo Guadiz III, LTFRB Chairman
The suspension is effective from January 23, giving inDrive 15 days to present proof of compliance. The company, operated by RL Soft Corporation, has yet to respond to requests for comment.
Additionally, the LTFRB found inDrive violated the fare matrix for TNVS by allowing “fare haggling,” where passengers offered first to the driver before negotiations began. This practice is outside the fare system, which provides a flag-down, per-distance, per-minute pricing scheme.
For now, we can only wait as to what this suspension will do to the ride-hailing company and what solutions they will come up with.
Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.
Currently he writes for Gadget Pilipinas and formerly wrote for Grit.PH.
He is also a musician, foody, gamer, and PC enthusiast.
