LTFRB to deploy 'mystery riders' after issuing show-cause order to Joyride for alleged excess fares

MANILA, Philippines (Update 2, 6:08 p.m.) — The Land Transportation Franchising and Regulatory Board said Thursday it would deploy "mystery riders" to catch transport network companies charging excessive fares beyond the set structure after it issued a show-cause order to ride-hailing app Joyride. 

"The LTFRB intends to deploy mystery riders in the next few days to check on the compliance of the TNCs and TNVS operators on the proper fare structure and the terms and conditions the MC," the board said in a statement sent to reporters.

In a letter dated May 24, 2022, Joyride was directed to submit their written explanation to the Board why their accreditation as TNC should not be suspended and/or revoked within 10 days from receipt of the show cause order.

The LTFRB, based on a complaint it received, said that Joyride Ecommerce Technologies Corp. was charging as high as P1,000 representing a one-way ride for a ‘Priority Boarding Fee.’ The agency has not given reporters access to the complaint. 

LTFRB also issued a show-cause order to Joyride asking it to explain its "priority boarding fee" feature, claims the company charged as high as P1,000. Joyride now directed to explain why its accreditation should not be suspended @PhilstarNews

— Franco Luna (@francoIuna) June 2, 2022

The board said that the fares for the TNVS are supposed to be:

• P40.00 flag down rate for sedan-type TNVS, with P15.00 fare per kilometer and P2.00 per minute travel fate.
• For a Premium AUV/SUV, flag-down rate is at P50.00 with P18.00 per kilometer fare and P2.00 per minute travel,
• Hatchback or Sub-compact type TNVS have P30.00 flag-down rate with a P13 per kilometer fare rate and P2.00 per minute travel fare. 

"Any TNC and/or TNVS caught violating the terms and conditions of the MC shall be subject to fines and penalties...the LTFRB is also encouraging the riding public who are using the TNVS to report any irregularities committed by ride-hailing services," the board said. 

Under the transportation department's joint administrative order on penalties, overcharging fees yields a fine of P5,000 for the first offense, P10,000 and impounding of unit for thirty days for the second, and a fine of P15,000 and cancellation of certificate of public convenience for the third. 

A surge rate of double the sum of fare per kilometer and per minute travel is applicable for all types of TNVS.

Though it "did not directly receive any complaints" on other companies, the agency saw it fit to also write the other TNCs warning them against the imposition of excessive fares contrary to current guidelines. 

The LTFRB reminded TNCs that based on the Terms and Conditions of a Certificate of Transportation Network Company, TNCs are required to make the rate structure transparent before the potential passenger confirms the ride. 

"There are only 3/10 cars pre-pandemic on the road. 8,000 slots were recently opened but only 5% had been onboarded by the government," Grab Philippines said in a tweet Thursday. 

Still 'investigating' the complaint

The LTFRB eventually deleted its press release later Thursday. In the new PR, it removed any mention of Joyride's name with respect to the show-cause order and instead claimed it is still "investigating" the complaint. 

LTFRB executive director Tina Cassion told reporters in a Viber message that this was "so as not to single out Joyride" and "to validate the anonymous complaint." 

The LTFRB said it also wrote separate warning letters to E-pick Me Up, Ipara, Joy Ride, My Taxi PH, and Cloud Panda, who are all accredited TNCs, on May 24. 

However, Cassion admitted that only Joyride had a complaint filed against it, while the LTFRB had not received complaints involving the other companies. Cassion also said that JoyRide has since sent its response letter. 

"TNC like you must make the rate structure transparent before the potential passenger confirms the ride. The application must clearly display the total fare, fare range, or rate by the distance or time," the warning letter to My Taxi PH reads. 

"You are directed to strictly follow the set fare structure for TNVS and the TNC Accreditation Terms and Conditions."

Priority boarding fee

In an emailed response to Philstar.com, JoyRide said it took exception to the allegations that it was charging P1,000 for its "Priority Boarding Fee." 

"JoyRide is completely unaware of any such findings made by the LTFRB up to this date. What is factually known to us is that JoyRide was requested to explain by the LTFRB on May 24, 2022 the so-called vague and unclear allegations of an anonymous complaint for a supposed P1,000 fare, the details of which including points of pickup and drop-off, were totally omitted and unexplained. 

"Despite the lack of material details, on May 27, 2022, JoyRide submitted our clarification categorically stating that JoyRide is compliant with the fare structure set by the LTFRB guidelines." 

The company said that its clarification was acknowledged by the LTFRB through email and that no other communication or decision or any so-called findings was sent 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," it said. 

JoyRide explained that a Priority Fee is an optional fee that customers can freely add to the total fare of the booking, adding that its fare structure is "100% compliant with relevant LTFRB Memoranda and is fully reflected and disclosed in our app."

"It is an industry used term and practice in case a customer would like to tip or incentivize a driver-partner in advance," it said. — with a report from James Relativo