The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended the operation of the ride-hailing company inDrive over complaints of fare haggling, which the agency said, is a violation of public transportation rules.
The decision was made during a hearing conducted by the LTFRB on Tuesday, Jan. 23. The agency is yet to release the copy of its decision.
LTFRB chairman Teofilo Guadiz III confirmed that a cease and desist order was indeed issued to the RL Soft Corporation, a local firm running the inDrive, based on the pieces of evidence presented at the course of the hearing.
He said the inDrive was ordered to halt its operations starting Tuesday, Jan. 23, until it presents proof of compliance, giving them 15 days to comply.
Citing their decision, Guadiz explained that the haggling of fare is a violation of the LTFRB Memorandum Circular 2019-036 which specifies the rules for fare rates on Transportation Network Vehicle Services(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 (TNC),” said Guadiz.
In November last year, the LTFRB approved the operation of inDrive through the RL Soft Corporation, to boost public transportation following the exit of Uber in 2018—which led to the solo operation of Grab.
A case was filed before the LTFRB against inDrive over allegations of fare haggling.
Guadiz said the LTFRB decision reflects their commitment to ensure practices within the transportation industry.
“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,” said Guadiz.
The official then warned all Transportation Network Companies to adhere to the terms and conditions of accreditation, which he said, 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.