MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) summoned new ride-hailing company Hype for allegedly charging “illegal” fare.

In an order dated July 13 and released to media on Wednesday, July 18, the LTFRB asked Hype to explain – within 5 days from receipt of the order – why it charged P2 per minute of travel “without authority from the Board.”

“Acting on a report forwarded by a concerned citizen to the Board, respondent Hype Transport Systems Incorporated is hereby ordered to show cause in writing, why its Certificate of Accreditation as a transportation network company (TNC) should not be suspended or canceled,” reads the order signed by lawyer Carl Marbella of the LTFRB’s legal division.

Hype was also asked to appear at a hearing on the matter on July 24 at 9 am.

LTFRB issues a show cause order to Hype Transport Inc for allegedly charging P2/min fare “without the approval of the Board.” || via @reyaika pic.twitter.com/cIIJGw7wTh

— Rappler (@rapplerdotcom) July 18, 2018

Under a government-approved scheme, the flagdown rate for ride-hailing companies depends on the vehicle type – sedans have a base of P40, SUVs P70, and vans P100.

There is an additional charge of P14 per kilometer, but with a surge cap at times two the charge. There are no travel duration charges. (READ: How much are the fares of new ride-hailing apps?)

Hype was the first TNC accredited this year, after Grab bought the Southeast Asia operations of Uber.

Among the new ride-hailing firms, Hype is seen as Grab Philippines’ potential rival, along with Owto.

Grab was recently involved in a similar “illegal” fare controversy, with the LTFRB ordering it to pay a fine of P10 million. Grab was also told to reimburse its customers. – Rappler.com