The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a temporary suspension to RL SOFT Corp, the operator of InDrive, following complaints of allegedly violating the government’s fare rules.
Effective from January 23, the suspension lasts for 30 days. In an official statement, the LTFRB said that InDrive must comply with MC 2019-036: Fare Rules for Transportation Network Vehicle Services (TNVS).
It was only just last month that InDrive obtained official accreditation from the government agency to operate as a transport network company, allowing it to compete with Grab Philippines. The suspension is centered on InDrive’s distinctive fare negotiation model in which drivers and commuters can negotiate and mutually agree on the fare price.
According to LTFRB Chairman Teofilo Guadiz III, this model is a clear violation of the terms and conditions as specified in InDrive’s accreditation as a TNVS. The LTFRB mandates a specific fare matrix that dictates the rates for flagging down, duration, distance travelled, and surges, which seems to be contradicted by InDrive’s pricing strategy.
InDrive has been given 15 days to comply with these requirements. Apart from its operations in the Philippines, the global company offers its service in 700 cities and 46 countries, including several locations in Southeast Asia and around the world.
Source: ABS-CBN News