LTFRB summons new firm over per-minute charge

The Land Transportation Franchising and Regulatory Board (LTFRB) has summoned new ride-hailing company Hype over its alleged illegal P2-per-minute charge.

In a show cause order (SCO) signed July 13 and released yesterday, LTFRB summoned Hype Transport Systems Inc. for a hearing on July 24.

The transport network company (TNC) would be made to explain why its accreditation should not be suspended or cancelled for allegedly charging P2 per minute of the trip “without authority from the board.”

Hype is also charging its passengers a flagdown rate of P40 and P14 per kilometer.

The LTFRB said it is acting on a report forwarded by a concerned citizen on the alleged illegal charge.

Hype president Nick Escalante said they are drafting their reply to the LTFRB.

The SCO against Hype comes in the wake of the LTFRB fining Grab P10 million for charging passengers P2 per minute of the trip.

The LTFRB also ordered Grab to reimburse their passengers the company’s commission from the P2-per-minute charge.

LTFRB board member Aileen Lizada sided with Grab, saying that “technicalities” made the charge legal.

Grab said it is set to file a motion for reconsideration and is willing to exhaust all legal and administrative means to challenge the LTFRB’s decision.