LTFRB said that it intends to deploy “mystery riders” as it warns ride-hailing companies against collecting excess charges from passengers.
LTFRB — On Thursday, the Land Transportation Franchising and Regulatory Board reminded app-based ride-hailing companies against collecting excess charges from their passengers beyond the fare structure set by the Board.
The agency said that it intended to deploy “mystery riders” as it warned ride-hailing firms against charging excessive fares beyond its approved fare structure.
According to LTFRB executive director Tina Cassion, the “mystery riders”, which would be deployed in the next few days, will check the compliance of TNVS (Transport Network Vehicle Services) and TNCs (Transport Network Companies) operators on the proper fare structure and the terms and conditions in the memorandum circular.
Any TNVS and/or TNC caught violating the agency’s orders shall be subject to penalties and fines.
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The agency issued the statement after receiving a report that JoyRide Ecommerce Technologies Corp. was charging passengers a PHP 1,000 “Priority Boarding Fee” for a one-way trip.
According to the agency, it directed the transport network company, in a letter dated May 24, 2022, to submit a written explanation on why their accreditation as a TNC shouldn’t be revoked and/or suspended within 10 days from receipt of the show cause order.
JoyRide senior vice president for Corporate Affairs Noli Eala said in a statement that 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’”.
Eala clarified that a “Priority Fee” is an optional fee that customers can freely add to the total fare of their booking, adding that it’s “an industry used term and practice in case a customer would like to tip or incentivize a driver-partner in advance”.
He also said that the TNC submitted a clarification to the agency on May 27, 2022, categorically stating that “Joyride is compliant with the fare structure set by the LTFRB guidelines”.
The agency, later on, revised its press release as it removed the mention of JoyRide’s name. However, the agency said that it is still investigating the anonymous complaint.
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