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InDrive resumes operations after complying with LTFRB fare system

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Andrea Taguines

ABS-CBN News

Ride-hailing app InDrive on Friday announced the official resumption of its operations in the Philippines following a 5–month suspension over its fare haggling system.InDrive’s unique proposition was that it lets drivers and passengers negotiate for fares. After which, both parties have the freedom to accept or turn down the transaction altogether.But despite InDrive’s initial accreditation, the Land Transportation Franchising and Regulatory Board (LTFRB) ultimately decided that the company’s business model violated its fare system which provides a flag-down, per-distance, per-minute, and surge pricing scheme.<div><a href="https://news.abs-cbn.com/business/2024/5/9/new-pinoy-ride-hailing-app-eyes-tapping-unconsolidated-jeepney-drivers-833" id="isPasted">New Pinoy ride-hailing app eyes tapping unconsolidated jeepney drivers </a> </div>During the announcement of its relaunch, InDrive said it has now made the necessary changes.“Now we’re fully compliant with the regulatory requirements. Our price is determined by the application and only the application can set price within regulatory requirements, the minimal and maximum price limits,” said Afanasii Petrov, InDrive’s Business Development Manager for Southeast Asia.But Petrov noted that InDrive still has other unique features such as the freedom to choose a driver or a passenger.The app allows passengers to browse through a driver’s rating, car model, and history on the road before booking or accepting a ride.<div><a href="https://news.abs-cbn.com/news/2024/5/16/ride-hailing-app-driver-hinoldap-ginilitan-1553" id="isPasted">Ride-hailing app driver hinoldap, ginilitan </a></div>“On (the) driver’s side, drivers have freedom to choose their own ride. For example, how far they want to go, which direction, how far is the pickup location. It’s all about transparency,” he added.As a new player, the challenge for InDrive now is the onboarding of more drivers.“We have a around a few thousand drivers with us. We are on initial stage of our launch, that’s why the amount is a little bit lower,” said Petrov.To encourage more applicants, InDrive signed a partnership with transport group Laban TNVS, which it said is also proof of its commitment to protect the welfare of its partner-drivers.InDrive said it will implement a zero-percent commission rate in the first two to six months of its operations. After that, it will only charge a 10-percent commission rate from its drivers.Laban TNVS President Jun De Leon welcomed the announcement, noting that this is much lower than what other transport network companies deduct from their earnings.<div><a href="https://news.abs-cbn.com/video/business/01/19/24/new-car-ride-app-peekup-promises-better-experience" id="isPasted">New car-ride app PeekUp promises &#x27;better experience&#x27;</a></div>“Matagal na po nating panawagan sa ating gobyerno, sa LTFRB na i-regulate ang mga commissions ng mga transport network companies from 23 percent to 10 to 12 percent maximum,” said De Leon.“Nung lumapit tayo sa InDrive, nagkaroon kami ng pag-asa dahil, isipin mo, additional 10 percent ang kita (ng drivers) every day kada pasahero,” he added.InDrive’s four-wheel ride hailing service is now available in Metro Manila, Bacolod, Baguio, Iloilo, Butuan, and Cagayan De Oro.It plans to expand its operations in Cebu and Davao next.

Ride-hailing app InDrive on Friday announced the official resumption of its operations in the Philippines following a 5–month suspension over its fare haggling system.

Ride-hailing app InDrive on Friday announced the official resumption of its operations in the Philippines following a 5–month suspension over its fare haggling system.