The Land Transportation Franchising and Regulatory Board (LTFRB) announced on Thursday that it planned to use “mystery riders” as it cautioned app-based ride-hailing companies against charging excessive rates above its permitted fare structure, following a complaint against one player.
Tina Cassion, executive director of the LTFRB, stated that “mystery riders” would be deployed in the coming days to determine whether transport network companies (TNCs) and Transport Network Vehicle Services (TNVS) operators are adhering to the memorandum circular’s fare structure and terms and conditions.
Any TNC and/or TNVS found in violation of the terms and conditions of the MC will be liable to the fines and penalties outlined in Joint Administrative Order 2014-01.
The LTFRB stated that it had received a complaint that Joyride Ecommerce Technologies Corp. was charging P1,000 for a one-way ride as a “Priority Boarding Fee.”
In a letter dated May 24, 2022, the LTFRB instructed Joyride to give a written explanation as to why their accreditation as a TNC should not be suspended and/or canceled within 10 days of receiving the show cause order.
Joyride senior vice president for Corporate Affairs Noli Eala stated in a separate statement that the TNC “takes objection” to charges that it was found “charging P1,000 for a one-way ride due to what is known as a “Priority Boarding Fee.”
LTFRB to utilize ‘mystery riders’ amid excessive fares issue
“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 TNC has sent a clarification to the LTFRB on May 27, 2022, stating definitely that Joyride is consistent with the fare structure stipulated by the LTFRB standards, according to the Joyride CEO.
According to Eala, Joyride’s response letter also said 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.
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