New Transport Network Vehicle Service (TNVS) provider, inDrive, is ready to meet with the LTFRB in dialogue in hopes of receiving permission to resume operations.
The multinational ride-hailing service recently received accreditation to operate from the Land Transportation Franchising and Regulatory Board (LTFRB) just last December. However, due to complaints of fare haggling, which the agency said, is a violation of public transportation rules, inDrive was ordered to halt its operations on Jan. 23, 2024 until it presents proof of compliance within 15 days.
Freedom of choice
When if first launched, inDrive’s app allowed passengers to select their preferred driver. Passengers are then presented with a list of available drivers, allowing them to choose based on preferences like driver rating, vehicle model, and estimated time of arrival.
Drivers are also offered the same level of transparency with ride requests showing the fare, pick-up point, and destination. This allows them to select or ignore ride requests without penalties, granting them some flexibility.
The service also has some built-in safety features such as the ability to share real-time GPS location and ride details with trusted contacts, a dedicated emergency button connecting to law enforcement agencies, a chat function, and 24/7 support via in-app chat and email.
The source of complaint is likely inDrive’s original feature that allowed drivers to present fares to passengers, allowing potential passengers to choose from a list. The complainants to the LTFRB may have likely been referring to these selectable fares, which may be interpreted to be price haggling.
App modifications
inDrive has since made modifications to its app and its operations to comply with the matrix fare formula set by the LRTFRB.
In an interview with select members of the media, inDrive executives have shared the changes the service has made to be compliance.
“LTFRB issued an order to temporarily suspend our operations,” said Afanasy Petrov, inDrive Business Development Manager for the Philippines. “We are fully compliant now and are ready to present our updated passenger and driver flow to the state regulator.”
“We made modifications,” explains Mohd Zulkarnain, inDrive Public Relations Manager SEA. “We removed negotiation feature. It complies with the matrix formula set with the LTFRB. We have made enhancements and informed the LTFRB about the changes. We are ready to resume operations ASAP pending approval.”
inDrive maintains that while passengers may no longer choose the fare, many of inDrive’s features have still been retained.
“Passengers can still choose which driver they want, see how many drives has he done, and even choose their driver’s arrival time. Because of these advantages, it still brings value to the passenger with the freedom of choice,” said Petrov.
Before its suspension, inDrive which received accreditation to operate nationally, has already met its initial driver recruitment targets within a matter of weeks and had begun to operate in Metro Manila with plans to expand to cities like Bacolod, Baguio, Iloilo City, Cagayan de Oro, and Butuan.
Ready to restart
The executives have expressed regret that the suspension has not only affected their operations but the livelihoods of their driver partners as well.
“As soon as we get go signal, we will definitely reactivate our business in Metro Manila. We have a large base of drivers. They are waiting for us to come back,” said Zulkarnain. “We are fully committed to comply with the regulations and have demonstrated with our actions by making changes to our app. We are just waiting for feedback. We reach out to the LTFRB day by day, showing that we are fully compliant and are ready to present our new operations flow.”
“As a business and as a company, we are ready to bring our advantages to the customers, drivers and passengers,” said Petrov. “We are ready to bring competition. Competition makes the market much more effective. We invested quite a bit in recruitment, the office, marketing. We want to continue it and are just waiting for the go signal to continue our investments in the country.”
inDrive is currently awaiting audience with the LTFRB to present the changes it has made to be in compliance with the agencies requirements and hopes to resume operations if allowed by the agency.