The Department of Transportation (DOTr) said on Tuesday the Land Transportation Franchising and Regulatory Board (LTFRB) has issued a “cease and” order against InDrive, a transport network company.
In a media advisory, the DOTr quoted LTFRB Chairman Teofilo Guadiz III as saying “the Board’s decision is—cease and desist.”
On Tuesday, the LTFRB conducted a hearing on a complaint against InDrive for supposedly violating the fare matrix set by the agency for transport network companies.
Lawyer Ariel Inton, who represented the complainants during the hearing, said InDrive’s bid-ask fare model goes against the current regulated fare systems.
According to InDrive’s website, passengers may place fare “offers” to drivers nearby through its platform.
In contrast, the matrix set by the LTFRB includes a flag down rate, a per minute charge, a distance rate, and a surge component.
“It’s essentially contracting, which isn’t permitted under the fare matrix,” he said. “Their system is really violative.”
He further explained that even though InDrive claims its model benefits passengers by allowing them to choose fares, in practice, drivers gravitate towards higher fares, which can disadvantage passengers.
“The board’s finding is that they were convinced that there was a violation so InDrive was suspended,” he said. Inton warned: “If InDrive continues their operations tomorrow, we will move for the revocation of their accreditation.”
InDrive’s representatives were sought for comment, but they have yet to reply to the BusinessMirror’s queries as of writing time.
“They need to change their system and comply with our regulations,” Inton said. “But now it is very clear that they have a violation.”