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LTFRB airs concern over 2 ‘illegal’ TNVS

January 27, 2023 Jun I. Legaspi 326 views

THE Land Transportation Franchising and Regulatory Board (LTFRB) yesterday warned the public booking rides and deliveries from two colorum Transport Network Vehicle Service (TNVS) that these ride-hailing apps were illegal.

LTFRB Chairman Atty. Teofilo E. Guadiz III said Maxim and InDrive are operating as TNVS but without the necessary permit to operate as Transport Network Companies or TNCs.

He said the two apps are owned by companies operating in Russia and are purportedly operating in many cities and municipalities in the country and in several countries overseas.

Guadiz appealed to the riding public not to patronize these colorum ride-hailing services for their own safety. Chairman Guadiz said they are not accredited nor monitored by any government agency for pricing and safety concerns.

“The danger here is that if something bad happens, the public has no company to complain to, which is why I hope the public will stop using their services,” Chairman Guadiz added.

For InDrive, fares are supposedly decided through real-time bidding exchanges between passengers and drivers, while Maxim lists a flag-down rate of P10 and fixed rate per kilometer, but passengers may opt to add “tips” or “gifts” to drivers to lure them to accept their booking.

“Since these apps are not licensed as TNCs, the requirements of financial capacity, terms and conditions of service, customer service, driver accreditation and training and other crucial requirements are not complied with. Hence, they are not authorized to offer transport services on their app,” Chairman Guadiz stressed.

Chairman Guadiz added that poor service quality, reliability and safety due to lax driver recruitment criteria resulting in low-quality drivers may also be potential issues, aside from the fact that these firms may not be paying the correct taxes to the government, thus denying the government of potential and much-needed revenue.

He said they would seek an audience with the Department of Information and Communications Technology (DICT) to discuss with tech giants Apple and Google on the possible banning of these apps in their respective app stores in the country.

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