MANILA, Philippines -- The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a show cause order (SCO) against at least 19 platform providers of ride-hailing services for reportedly failing to properly implement the recently-approved fare increase.
Acting LTFRB chairman Greg Pua Jr. said the 19 Transport Network Companies (TNCs) have immediately been summoned after monitoring complaints from ride-hailing drivers concerning the effects of the non-implementation of the fare increase for Transport Network Vehicle Service (TNVS).
On September 28, the LTFRB implemented the fare increase for public utility vehicles. The adjustment covered TNVS, raising the base fare for TNVS sedans to P65 from P45; AUVs (Asian Utility Vehicle) to P75 from P55; hatchbacks to P55 from P35; and premium TNVS to P165 from P145.
The TNCs, however, reportedly did not implement the fare hike and opted to retain the old fare system.
"Our fellow Filipinos may wonder why we still need to summon these TNCs instead of simply being grateful that TNVS fares have not increased," Pua said.
"For everyone's information, it is the TNVS partners—not the TNCs—who shoulder the cost of gasoline and diesel. So when the fare increase is not implemented for them, it is they who are affected, not the TNCs," he explained.
According to the acting LTFRB chief, the non-implementation of the fare increase defeats the very intent behind its approval—which is to assist all those in the public transport sector, including those in the TNVS.
In the SCO signed by Atty. Ralph Aldrin Baguio, acting LTFRB Legal Division head, the agency asked the TNCs to explain in writing why their authority to operate should not be suspended or cancelled for defying the LTFRB order.
"The respondent-TNCs are hereby directed to show cause in writing within three working days from receipt hereof why their respective TNC Accreditations should not be suspended or canceled for the alleged failure to adjust and implement the approved fare rates for TNVS," the order read.
It explained that the defiance resulted in the continued charging of fares inconsistent with the fare adjustment authorized by the LTFRB, in violation of the existing rules and regulations.
The hearing has been set on October 7, the LTFRB said.
"Failure on the part of the respondent to appear before the hearing officer and file an answer shall be considered as a waiver on its part to be heard and shall cause the imposition of a penalty," the same order said.
