Grab challenger scraps price-haggling feature to secure LTFRB okay
Ride-hailing app InDrive, which was suspended due to alleged violations in its fare matrix scheme, is ready to resume operations this week after complying with the regulations set by the Land Transportation Franchising and Regulatory Board (LTFRB).Roman Ermoshin, InDrive director for Asia-Pacific region, told the Inquirer they have removed the price-haggling feature in its platform, which was flagged as a violation by the LTFRB. While passengers are allowed to negotiate for cheaper fares, it may translate to lower revenues for drivers.
“We made all the changes they asked us to make. We are ready to resume operations,” he said. “We just wait for the green light to start operations.”
Price haggling is against the fare matrix scheme followed by transportation network vehicle service operators, which use flagdown rate, per-kilometer, per-minute and surge fees in fare computation. LTFRB issued a suspension order against InDrive effective Jan. 23. The Grab challenger was given 15 days to present proof of compliance, which Ermoshin said they did on Friday. The InDrive official said the price-haggling feature was what made the ride-hailing service operator “unique” among its competitors.
He said it was the same pricing scheme implemented across 46 countries where they are operating.
Ermoshin said they understood that each jurisdiction has different regulations. “The LTFRB came to us with a number of complaints. These are not in line with the law. We listened to what they told us,” he said. Even with the price-haggling feature removed, Ermoshin said they could still offer cheaper fares compared to competitors because they charge driver commission fees of below 10 percent, lower than the 20-percent industry average. Currently, InDrive has about 6,000 partner-drivers, most of which are in Metro Manila. The others are in Bacolod, Baguio and Cagayan.
It targets to have about 20,000 drivers in the National Capital Region by the end of the year. Outside the capital, it aims to have 3,000 drivers within the same period. InDrive received its accreditation from the LTFRB in January.The ride-hailing market in the four-wheel segment is dominated by Grab after it acquired Uber’s business in 2018.
