LTFRB to deploy ‘mystery riders’ amid excessive fares complaint

The Land Transportation Franchising and Regulatory Board (LTFRB) said Thursday it intends to deploy “mystery riders” as it warned app-based ride-hailing companies against charging excessive fares beyond its approved fare structure after it received a complaint against one player.

LTFRB executive director Tina Cassion said the “mystery riders” which would be deployed in the next few days will check the compliance of the transport network companies (TNCs) and Transport Network Vehicle Services (TNVS) operators on the proper fare structure and the terms and conditions the memorandum circular.

Any TNC and/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.

In a statement, the LTFRB said it received a complaint that Joyride Ecommerce Technologies Corp. was charging P1,000 representing one-way ride due to what is called “Priority Boarding Fee.”

The LTFRB said it directed Joyride, in a letter dated May 24, 2022, to submit a written explanation on why their accreditation as TNC should not be suspended and/or revoked within 10 days from receipt of the show cause order.

In a separate statement, Joyride senior vice president for Corporate Affairs Noli Eala said the TNC takes exception to the allegations that it was found “charging P1,000 representing one-way ride due to what is called ‘Priority Boarding Fee’.”

“For clarity, a Priority Fee is an optional fee that customers can freely add to the total fare of the booking. It is an industry used term and practice in case a customer would like to tip or incentivize a driver-partner in advance,” Eala said.

The Joyride executive said the TNC has submitted a clarification to the LTFRB on May 27, 2022, categorically stating that "Joyride is compliant with the fare structure set by the LTFRB guidelines."

Eala said that Joyride’s reply letter further stated that “if the passenger were to book his/her ride through our app, in full transparency, it will compute a rate based on a base fare, distance, and time which follows the LTFRB guidelines."

“Our clarification was subsequently acknowledged by the LTFRB through email on May 30, 2022. No other communication or decision or any so-called findings were sent to JoyRide after that. As such, the allegations in the latest statement of the LTFRB dated June 2, 2022 shared to us by the media comes as a complete surprise to us,” he said.

The LTFRB, later on, revised its press release, removing the mention of Joyride’s name. But said that it is still investigating the anonymous complaint.

In a Viber message to reporters, Cassion confirmed that Joyride has already submitted a reply letter to the transport regulator.

Cassion also explained the removal of Joyride’s name in the revised press release. She said the move was done “so as not to single out Joyride.”

The LTFRB official said that all TNCs are sent with letters reminding them to comply with the agency’s set fare structure.

The LTFRB reminded all the TNC of the fares of TNVS or app-based ride hailing services of the fare structure set by the agency under its Memorandum Circular No. 2019-036.

The fares for the TNVS are supposed to be:

•     P40.00 flagdown rate for sedan-type TNVS, with P15.00 fare per kilometer and P2.00 per minute travel fare
•     For Premium AUV/SUV, flagdown rate is at P50.00 with P18.00 per kilometer fare and P2.00 per minute travel fare
•     Hatchback or Sub-compact type TNVS have P30.00 flagdown rate with P13 per kilometer fare rate and P2.00 per minute travel fare

“Surge rate of double the sum of fare per kilometer and per minute travel is applicable for all types of TNVS,” the LTFRB said.

The agency said it saw fit to write all TNCs warning them against the imposition of excessive fare contrary to current guidelines on TNVS fares.

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

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 are required to make the rate structure transparent before the potential passenger confirms the ride.

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

“JoyRide welcomes the reminder coming from the LTFRB with regard to the fare regulations for TNVS. In this regard, JoyRide reiterates that its fare structure is 100% compliant with relevant LTFRB Memoranda and is fully reflected and disclosed in our app,” Eala said.

“JoyRide would like to reassure the riding public, our driver-partners, and our regulators that JoyRide will always comply and follow the terms and conditions of the Certificate granted to us as a bona fide TNC. It will always be our avowed purpose to serve our stakeholders with efficiency, affordable pricing and continuous accessibility for all keeping in mind the values for which JoyRide has been known for - utmost integrity, professionalism, and dedication,” it added.—AOL, GMA News