Transport network company (TNC) InDrive has paused its operations, following its temporary suspension due to its pricing mechanism.
InDrive said it “acknowledges” the concern raised by the Land Transportation Franchising and Regulatory Board (LTFRB) regarding its fare system and is now working on compliance.
“As part of these ongoing improvements, we will be temporarily pausing our service operations. This is a necessary step to ensure that our enhancements are implemented effectively and align with both our users’ needs and regulatory standards,” the company said in a statement.
On Tuesday, the LTFRB issued an order suspending the operations of InDrive, the ride hailing brand under RL Soft Corp.
According to LTFRB Chairman Teofilo Guadiz III, InDrive’s operations shall be suspended until it complies with Memorandum Circular (MC) 2019-036 or the Fare Rates For Transportation Network Vehicle Services (TNVS).
The MC lists down the fare matrix for TNVS pricing, including the flag down rate, a per minute charge, a distance rate, and a surge component.
In contrast, according to InDrive’s website, passengers may place fare “offers” to drivers nearby through its platform.
“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,” Guadiz had said.
InDrive was given 15 days to comply.
“During our recent engagement with the LTFRB, productive discussions transpired and we are now in the process of further developing our application to ensure that there is no confusion among our users and that they experience the best possible service,” InDrive said.
InDrive secured last December its accreditation as a TNC from the LTFRB, initially operating in five cities namely: Baguio, Iloilo, Cagayan de Oro, Butuan and Bacolod.
A Russian-founded company based in the United States, inDrive is currently operating in more than 700 cities across over 46 countries and is the second-most downloaded mobility app. In Southeast Asia, inDrive’s services are already being offered in Indonesia, Malaysia, Thailand, Vietnam and Laos.
It has set sights on operating in Metro Manila this quarter.