Two companies operating in Russia are illegally operating transport network vehicle service (TNVS) in various provinces in the Philippines, the Land Transportation Franchising and Regulatory Board (LTFRB) disclosed on Friday, Jan. 27.
LTFRB chairman Teofilo Guadiz III identified the two app-based TNVS as InDrive which is operating in Baguio City, Bacolod City, Pampanga, Cebu, Iloilo and Cagayan de Oro City; and, Maxim which is allegedly operating in 41 cities in the country.
“Since these apps are not licensed as TNCs, the requirements of financial capacity, terms and conditions of service, customer service, driver accreditation and training and other crucial requirements are not complied with. Hence, they are not authorized to offer transport services on their app,” said Guadiz.
He said the LTFRB immediately conducted an investigation after receiving complaints and reports of the operations of TNVS in the country, one of which went viral in the social media.
Guadiz said the two companies focused their operation in the provinces where legal TNVS operation is either absent or with few services, adding that two have started inching their way in to Metro Manila.
"Based on our investigation, they have been operating in the country for six months already. The LTFRB silently investigated this after we received reports about it and it was confirmed that they were indeed operating," said Guadiz.
Why it was patronized
Aside from apparently taking advantage of low presence of legal TNVS in the provinces, Guadiz said the two app-based ride-hailing apps offer cheaper service rates.
For InDrive, fares are supposedly decided through real-time bidding exchanges between passengers and drivers.
Maxim, on the other hand, lists a flag-down rate of P10 and fixed rate per kilometer, but passengers may opt to add “tips” or “gifts” to drivers to lure them to accept their booking.
"These two are not only offering rides for four-wheel vehicles and motorcycles, they also engage in food delivery and other related services," said Guadiz.
Risky for users
Guadiz then warned the public against patronizing InDrive and Maxim for the sake of ensuring their safety: "The danger here is that if something bad happens, the public has no company to complain to, which is why I hope the public will stop using their services."
He added that the LTFRB would not be able to run after the two companies in cases of accidents and other complaints because aside from the fact that they could not monitor their activities, the two companies have no office or personnel in the Philippines that they could make liable of.
Unlike those accredited by the LTFRB and other government agencies which have insurance policies in cases of accidents, InDrive and Maxim do not have such safety coverage.
"That poor service quality, reliability and safety due to lax driver recruitment criteria resulting in low-quality drivers may also be potential issues, aside from the fact that these firms may not be paying the correct taxes to the government, thus denying the government of potential and much-needed revenue," said Guadiz.
Action
More than 10 complaints about InDrive and Maxim have already been received by LTFRB since last year.
Guadiz said they have also intensified the campaign against them, including an incident in Cebu wherein the driver of the colorum TNVS was arrested and the vehicle he was using was impounded.
"I have already ordered all our regional directors to intensify the effort against them. My instruction is to arrest the drivers and impound the vehicles," said Guadiz.
Guadiz said the LTFRB is now coordinating with the Department of Information and Communications Technology to ban the two apps in the country, which means that those living in the Philippines would not be able to download the InDrive and Maxim apps to their smartphones and other gadgets.
"We are also coordinating with the Philippine National Police through the Highway Patrol Group regarding this matter. So I am warning the drivers of these two colorum TNVS, stop your operation immediately before our LTFRB and PNP personnel catch you," said Guadiz.
"We are not saying that these two ride-hailing companies should not do business in the country, what we want them to do is to register and undergo government processes," he added.