InDrive told to cease ops over fare system breach

The Land Transportation Franchising and Regulatory Board or LTFRB has issued a cease and desist order against InDrive, a new transport network company, over violations of the fare matrix detrimental to commuters.

The LTRFB confirmed the order after its Board Members made the decision on Tuesday following a hearing on complaints against InDrive.

In an interview, Ariel Inton, representing the complainants, disclosed that InDrive's fare mechanism breached the LTFRB's established fare matrix.

Per the LTFRB, a fare matrix should include a flag-down rate, charges per distance and minute, and a surge pricing guideline.

Inton, however, decried InDrive's bid-ask fare model, which he said goes against the regulatory framework set by the LTFRB for transport network vehicle services or TNVS

"Their system is violative. It's essentially contracting, which isn't permitted under the fare matrix," Inton said.

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.

Inton said the LTFRB found sufficient evidence of these violations, leading to the suspension of InDrive's operations.

InDrive has yet to respond to the suspension order.

Last December, inDrive said it already kicked off its driver recruitment initiatives in preparation for its maiden operations in five cities outside Metro Manila, namely: Bacolod, Baguio, Iloilo City, Cagayan de Oro and Butuan.

Before the company entered the Philippine ride-hailing market, inDrive had established a firm presence in three other countries in Southeast Asia, namely Indonesia, Malaysia and Thailand. Globally, inDrive is present in over 700 cities and 45 countries.