Ride-hailing newbie suspended amid price-haggling brouhaha

MANILA, Philippines  —Ride-hailing app InDrive has temporarily halted operations after receiving suspension order from the Land Transportation Franchising and Regulatory Board (LTFRB) due to alleged violation in fare matrix, but is working with the government to comply with regulations.

In a statement on Thursday, the company rivaling dominant player Grab Philippines said stopping its operations for now was “a necessary step to ensure that our enhancements are implemented effectively and align with both our users’ needs and regulatory standards.”

The LTFRB recently flagged InDrive for its price-haggling scheme, which essentially allows passengers to negotiate for lower fares.

It is against the fare matrix scheme being followed by transportation network vehicle service operators, which considers flagdown rate, per-kilometer, per-minute and surge fees in the fare computation.

The order took effect on Jan. 23 and the company was given 15 days to present proof of compliance.

“We affirm our company’s commitment to provide better alternatives in transportation while ensuring compliance with all regulatory standards, and we are actively collaborating with the authorities towards this end,” InDrive said.

READ: Ride hailing firm InDrive gets license, eyes markets outside Metro Manila

“Our goal is to provide a fair, transparent and accessible service while upholding the highest standards of regulatory compliance and user satisfaction,” it added.

Last month, InDrive received its accreditation as a transport network company from the LTFRB.

The ride-hailing service provider seeks to activate its services initially in Bacolod, Baguio, Iloilo City, Cagayan de Oro and Butuan. It is currently in the process of onboarding drivers before officially launching services “soon.”

The app allows its users to select preferred driver based on driver rating, vehicle model and estimated time of arrival. At the same time, drivers can also choose their passengers according to pickup point, destination and fare.

READ: Russian-owned firm says it ‘does not monetize’ ride-hailing service in PH

InDrive, founded in 2013, has presence in over 600 cities in 47 countries across five continents. The company, which has Russian roots but is now headquartered in California, achieved unicorn status in 2021 when its valuation reached $1.23 billion.

The ride-hailing market in the four-wheel segment is dominated by Grab after it acquired Uber’s business in 2018. —Tyrone Jasper C. Piad