LTFRB questions Hype’s fare scheme
THE LAND Transportation Franchising and Regulatory Board (LTFRB) has issued a show-cause order to transport network company (TNC) Hype Transport Systems, Inc. for allegedly imposing a P2 per minute travel time charge without authority from the Board.
In an order released on Tuesday and shared with reporters on Wednesday, the LTFRB said it wants the ride-hailing company to explain its fare structure or else it may face suspension.
“Acting on a report forwarded by a concerned citizen to the Board, respondent Hype Transport Systems, Inc. is hereby ordered to show cause in writing within a period of five days from receipt of a copy hereof, why its Certification of Accreditation as a Transport Network Company should not be suspended…,” the order read.
But in a text message to HYPE President Nick L. Escalante said the company is not breaking any policies.
“We are currently drafting our reply to the LTFRB’s order. We assure the public that HYPE is transparent and abides by the law, and rules and regulations concerning TNCs. HYPE is one with LTFRB in its aim or providing quality choice for the riding public,” he said.
The LTFRB said the charge is on top of a flag-down rate of P40 and an additional charge of P14 per kilometer. It also set a hearing for the said case on July 24, Tuesday.
Hype was sought for comments on the show- cause order but has yet to issue an official statement as of press time.
In April, Grab Philippines (MyTaxi. PH) was also questioned for its P2 per minute waiting time charge which led to the fare component’s suspension.
It also brought the LTFRB to slap a P10-million fine on the company last week for the said charge, and an order to rebate the P2 per minute Grab collected from passengers for its almost one-year implementation.
Hype is one of the local ride-hailing companies accredited by the LTFRB in April after Grab’s buy-out of the southeast asian operations of Uber Technologies, Inc., leaving it the sole TNC in the market.