LTFRB Halts InDrive Operations Amid Fare System Controversy

At face value, InDrive's fare proposal system appears to benefit commuters, as it permits passengers to propose fares which drivers can then accept, reject, or counter without penalies. The US-based ride-hailing service claimed that this approach fosters transparency and empowers both passengers and drivers.

InDrive was granted accreditation by the Land Transportation Franchising and Regulatory Board (LTFRB) in December 2023. However, following complaints about its pricing method, the regulatory body issued on Tuesday a directive for the company to cease operations, says LTFRB spokesperson Celine Pialago.

Lawyer Ariel Inton, who represented the complainants at the hearing, asserted that InDrive's fare system did not adhere to the fare matrix mandated by the regulatory authorities. “It’s essentially contracting, which isn't permitted under the fare matrix,” he said. “Their system is really violative.”

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InDrive's platform allows passengers to propose fares to drivers, while the LTFRB's fare structure mandates a flag down rate, per-minute charge, distance rate, and a surge component.

Inton explained that despite InDrive's assertion that its fare model empowers passengers with the choice of fare bidding, it tends to result in drivers favoring higher bids, potentially disadvantaging some passengers.

“The board’s finding is that they were convinced that there was a violation so InDrive was suspended,” he stressed.

Inton warned that if InDrive continues its operations on Wednesday, they will take the necessary steps for the revocation of InDrive's accreditation.

Esquire Philippines reached out for comments from InDrive's representatives, but they have not responded yet as of this writing.