inDrive, a major international company operating in over 700 cities across 45 countries, including Indonesia, Malaysia, and Thailand, finds itself suspended. Considered to be Grab’s competition in the ride-hailing services market, the Land Transportation Franchising and Regulatory Board (LTFRB) enforced the suspension on Tuesday following alleged violations.
SEE: InDrive Revs Up as Grab’s Newest Rival, Set to Launch in the Philippines
The decision to suspend inDrive’s operations was disclosed by LTFRB spokesperson Celine Pialago-Vargas after a nearly two-hour hearing on the complaint filed by Lawyers for Commuters Safety and Protection (LCSP) president Ariel Inton against inDrive.
In a show-cause order issued on January 8, the LTFRB instructed inDrive to provide an explanation for its alleged violations related to “allowing haggling of fares.”
The suspension, effective from January 23, will endure until inDrive presents proof of compliance, allowing a 15-day window for the company to rectify the situation.
LTFRB representative Guadiz highlighted that the suspension is a result of reported violations related to negotiating or bargaining over transportation fares, a direct violation of the terms and conditions outlined in inDrive’s accreditation as a Transportation Network Company (TNC).
Guadiz underscored that not only does fare haggling contradict the principles of transparency but it also poses a threat to the well-being of both passengers and drivers.
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