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LTFRB warns TNCs vs overcharging

June 2, 2022 Jun I. Legaspi 399 views

THE LAND Transportation Franchising and Regulatory Board (LTFRB) has received information that Transport Network Companies (TNCs) have been adding or charging “excessive” fares beyond the fare structure for Transport Network Vehicles (TNVS) set by the Board under Memorandum Circular No. 2019-036.

Under MC No. 2019-036, the fares for the TNVS are supposed to be P40 flag-down rate for sedan-type TNVS, with P15 fare per kilometer and P2 per minute travel fate.

For premium AUV (Asian Utility Vehicle)/SUV (Sports Utility Vehicle), the flag-down rate is at P50 with P18 per kilometer fare and P2 per minute travel, while Hatchback or Sub-compact type TNVS have P30 flag-down rate with P13 per kilometer fare rate and P2 per minute travel fare.

A surge rate of double the sum of fare per kilometer and per minute travel is applicable for all types of TNVS.

Based on a complaint submitted to the LTFRB, a TNC (JoyRide PH) was charging as much as P1,000 representing a “one-way” ride due to the “Priority Boarding Fee.”

The LTFRB is currently investigating the said complaint.

However, the agency saw it fit to write already to all TNCs warning them against the imposition of excessive fares contrary to current guidelines on TNVS fares.

On May 24, 2022, the LTFRB wrote warning letters to E-pick Me Up, Ipara, JoyRide, My Taxi PH (Grab), and Cloud Panda, all accredited TNCs.

JoyRide PH welcomed the “warning” coming from LTFRB about the fare regulations for Transportation Network Vehicle Service (TNVS).

JoyRide reiterated that its fare structure is “100% compliant” with relevant LTFRB Memoranda and is fully reflected and disclosed in its app.

The said TNC mentioned in the LTFRB complaint is “cognizant of the need to be a responsible player in the 4-wheel ride-hailing space and is such, committed to pursuing the regulations imposed by our regulator.”

However, JoyRide respectfully takes exception to the allegations in the LTFRB statement that it was found that it was charging P1,000 to what is called the “Priority Boarding Fee.”

JoyRide is completely “unaware” of any such findings made by the LTFRB up to this date.

Moreover, the LTFRB reminded the TNCs that based on MC No. 2015-016-A, otherwise known as the “Terms and Conditions of a Certificate of Transportation Network Company” – TNCs must make the rate structure transparent before the potential passenger confirms the ride.

The LTFRB intends to deploy “mystery riders” in the next few days to check on the compliance of the TNCs and TNVS operators on the proper fare structure and the terms and conditions of the MC.

Any TNC or TNVS caught violating the terms and conditions of the MC shall be subject to fines and penalties stated in the Joint Administrative Order 2014-01, LTFRB pointed out.

The LTFRB is also encouraging the riding public using the TNVS to report any irregularities committed by ride-hailing transportations through their hotline number 1342 or sending a message to its Facebook page.

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