A coalition of transport network vehicle service (TNVS) operators and drivers on Thursday filed an omnibus petition with the Land Transportation Franchising and Regulatory Board to address alleged unfair fare policies, unregulated booking systems and a spate of violations by transport network companies.
At a media briefing in Quezon City, Jackson Tan of the United Transportation Coalition Philippines, along with Lady Ann Garcia and Gerric Asuncion, scored the LTFRB for “failure to update fare rates amid rising fuel prices.”
Tan expressed dismay over the lack of a fixed minimum fare for short-distance trips, and violations of the law on discounts for senior citizens, people with disability, and students.
According to Tan, the last fare increase for the TNVS sector was in 2019.
“Despite the increases in fuel prices over the past six years, the LTFRB has failed to adjust the fare rates for TNVS,” the group asserted, adding that “the current fare matrix has not been amended to reflect economic realities, causing TNVS drivers and operators to suffer financially.””
Tan urged the LTFRB to “prescribe and set an increase in the base fare for ride-hailing services in order to cope with the past years’ steady rise in fuel prices.”
Moreover, a policy on the flexibility of the fare rates must be considered, adjusting to multiple factors such as fluctuations in fuel prices, he said.
Asuncion urged the LTFRB to set a fixed minimum fare for trips that are under three kilometers.
Citing complaints by Grab passengers who reported that their bookings were cancelled by drivers despite prolonged waiting times, the UTCP said many drivers cancel trips that are less than three kilometers because the fare is too low to cover the operating costs.
“Passengers are frustrated because their bookings get cancelled, but the truth is drivers lose money on these short trips. There must be a fixed minimum fare to make these trips viable,” the group said in a statement.
The petitioners raised concerns about the booking system of a new TNVS player, InDrive, that allows passengers to select drivers based on profiles, ratings and ride history. They claimed that the setup could lead to unfair competition because some drivers could get more bookings, while others struggle to find passengers.
Tan asked LTFRB chief Teofilo Guadiz III to look into the tipping policy of JoyRide, which takes 20 percent from the drivers’ tip.
He charged that the policy was a violation of Republic Act No. 11360 mandating that “all service charges collected by hotels, restaurants, and similar establishments shall be distributed completely and equally among the covered workers.”
He called on the agency to simplify the process for TNVS applications and to block inactive TNCs from taking in new applicants since it clogs the system and delays the approval process for legitimate drivers.