LTFRB warns ride-hailing firms vs. non-compliance to fare adjustment

The Land Transportation Franchising and Regulatory Board (LTFRB) warned 19 ride-hailing platforms of sanctions such as suspension or cancellation of accreditation for failing to implement the newly approved fare increase for Transport Network Vehicle Service (TNVS) units.

The LTFRB issued a show-cause order (SCO) directing the Transport Network Companies (TNCs) to explain in writing why their accreditation should not be suspended or cancelled for allegedly failing to adjust their fares.

The order, signed by LTFRB Legal Division Officer-in-Charge Ralph Aldrin Baguio, stated: “The Respondent-TNCs are hereby directed to SHOW CAUSE in writing within three (3) working days from receipt hereof why their respective TNC Accreditation should not be SUSPENDED or CANCELLED for the alleged failure to adjust and implement the approved fare rates for TNVS.”

The 19 TNCs include Hirna Mobility Solutions Inc., My Taxi Ph. Inc., Ipara Technologies and Solutions Inc., E-Pick Me Up Inc., Cloud Panda, Joyride Ph Corp., Para Xpress Technology Services Inc., RL Soft Corp. (inDrive), Peek Up Philippines Corp., Taxsee Philippines Inc., Get Express Global Corp., Gocab Corp., Unified Transport Operation Corp., Hail Transport Inc., Metrohills Transport Association Inc., Leggo Information Technology Solutions, Unla La Corp., Pureride Corp., and Lalamove Technology Philippines Inc.

LTFRB’s order said the platforms’ failure to comply resulted in the continued charging of fares inconsistent with the adjustment authorized by the LTFRB, in violation of the agency’s rules and regulations.

It also warned that “failure on the part of the respondent to appear before the Hearing Officer and file an Answer, shall be considered as a waiver on its part to be heard and shall cause the imposition of a penalty.”

The LTFRB implemented the fare increase for public utility vehicles, including TNVS, on September 28. Under the new rates, the base fare for TNVS sedans rose to P65 from P45; for Asian utility vehicles (AUVs), to P75 from P55; for hatchbacks, to P55 from P35; and for premium TNVS, to P165 from P145.

The TNCs were reportedly charging the old rates.

Acting LTFRB Chairman Greg G. Pua Jr. said the agency summoned the platforms immediately after monitoring complaints from ride-hailing drivers about the effects of the non-implementation of the fare hike.

He acknowledged that some commuters may question why the regulator is going after platforms that kept fares low.

“Our fellow Filipinos may wonder why we need to summon these TNCs instead of simply being thankful that TNVS fares did not go up,” Pua said in Filipino. “For everyone’s information, it is the TNVS partner who shoulders the cost of gasoline and diesel, not the TNCs. So when the fare increase is not implemented for them, they are the ones affected, not the TNCs.”

Pua said the platforms’ refusal to apply the new rates defeats the purpose of the fare adjustment, which was approved to assist all those in the public transport sector, including TNVS drivers.