The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended the operations of car ride-hailing platform inDrive for allegedly allowing its drivers and passengers to haggle over fares.
In a statement issued Tuesday, the LTFRB said it ordered the temporary suspension of RL Soft Corporation, which is operating under the name inDrive, until it complies with Memorandum Circular 2019-036.
“The suspension comes in response to alleged violations concerning the haggling of fares, a clear breach of the terms and conditions outlined in its accreditation as a transportation network company,” said LTFRB Chairman Teofilo Guadiz III in the statement.
Starting January 23, inDrive must stop its operations until it shows evidence of compliance, the LTFRB said. It gave the company 15 days to comply with the memorandum circular.
The memorandum circular, which was issued in June 2019, sets the fare structure and guidelines for transport network vehicle services (TNVS) such as Grab, Angkas, and JoyRide.
According to the LTFRB, inDrive violated the memorandum circular by implementing a “name your price” feature, which lets its users negotiate or haggle the fare with the drivers before booking a ride.
InDrive, which received accreditation in December 2023, was set to go head-to-head with Grab, the only other player in the car ride-hailing industry.