Uber resumes service… for a few hours

MANILA, Philippines - Ride-sharing company Uber resumed operations yesterday noon after asking the Land Transportation Franchising and Regulatory Board (LTFRB) to reconsider its month-long suspension order.

However, at 6:06 p.m., Uber received a three-page decision denying its motion. The company said it was disappointed with the decision, but would comply with the order.

The LTFRB insisted that the suspension order stands and warned the transport group of apprehensions.

LTFRB chairman Martin Delgra III and members Ronaldo Corpus and Aileen Lizada said there was a misappreciation of the term “active” when the transport network company insisted it did not violate an earlier directive to stop accepting applications.

Uber had insisted that it only accepted applications but have not activated them, a move that the LTFRB still considers as a violation.

“The board expressly directed that there shall be no acceptance of additional applications for accreditation of transport network vehicles service (TNVS). The mere acceptance, much less, receipt and evaluation of documents submitted by applicants for accreditation, is tantamount to a direct violation of the order dated July 26, 2017,” last night’s LTFRB order read.

Delgra, who worries about regulatory problems if the number of Uber units continues to grow, said yesterday’s resumption of Uber operations is an act of defiance against a government order.

Malacañang supported the LTFRB decision with presidential spokesman Ernesto Abella saying the government empathizes with affected passengers “but Uber should comply with regulations.”

At the Senate, the chair of the committee on public services Sen. Grace Poe denounced the suspension order, calling it “cruel and absurd” because about 200,000 daily commuters would be disenfranchised.

Senate President Pro Tempore Ralph Recto said more than Uber, the riding public would be hurt more by the decision.

At the House of Representatives, Reps. Jericho Jonas Nograles and Alfred Vargas criticized the LTFRB decision, stressing that the agency should have taken into consideration the interest of passengers.

They said that the suspension not only punished drivers but also made commuters suffer. They believe a fine would have sufficed.

The suspension caused the demand for Grab taxi services to spike in the morning, with many customers complaining of being unable to book a ride. Fares, which also factor in demand, surged.

Brian Cu, Grab country head, apologized for the incident, which came to him as a shock. He assured the public that his company, with 28,000 vehicles on its platform, is working on the issue.

In resuming operations at noon yesterday, Uber said it reactivated its mobile booking system in Metro Manila and Cebu after a Transport Network Company lawyer filed the motion for reconsideration.

“In response to the overwhelming rider and driver demand, we have filed a motion for reconsideration with the LTFRB. This means that Uber’s operations will continue until the motion is resolved,” Uber said in a statement.

It stressed though that it suspended operations starting 6 a.m. yesterday in compliance with the suspension order. It is hoping the LTFRB would either lift or shorten the duration of suspension.

“Tens of thousands of riders were left stranded causing needless inconvenience, while drivers were unable to access the earning opportunities they rely on. We are looking forward to urgently resolving this matter with LTFRB in the interest of everyone who depends on Uber every day,” the statement read.

Delgra explained that the situation now is different from the time they allowed Uber to continue operating in July.

“They were not being honest so that’s why we need to hold the problem by the neck,” he added.

Lizada, LTFRB spokesperson and board member, advised the Land Transportation Office, Metropolitan Manila Development Authority and Highway Patrol Group to apprehend any Uber vehicle that operates on the streets. Those who will be caught risk a fine of P120,000 and vehicle impoundment for three months.

“I am now questioning the business etiquette of Uber. You are now putting all your TNVS at risk. What kind of partner operator are you? All your 68,000 TNVS will be on the road. What are you trying to prove? We are suspending your accreditation for one month and now you are telling your TNVS to go on the road?” Lizada said.

Malacañang said it understands the situation.

“The issue here is striking a balance between innovation and the laws and regulations that LTFRB has to implement as part of its administrative function in regulating common carriers… It should be resolved as soon as possible and ease the traveling situation, especially in NCR (National Capital Region),” Abella said. 

Uber and Grab were slapped with a P5-million fine each in July for operating about 50,000 vehicles without proper permits. 

Poe said the month-long suspension order was “too harsh and detrimental to the interest of the commuting public.”

“I am aghast that this agency (LTFRB) that committed before the Senate to resolve the issues has just imposed a cure that will only make the disease much worse. It does not solve the problem, but further exacerbates the problem of having an utter lack of safe, reliable and convenient transportation options for our people,” Poe added. 

She emphasized that the case of Uber does not involve roadworthiness, which could have put passengers at risk, but an administrative violation “which should have merited a corresponding administrative penalty” and not one that would have an adverse impact on the commuting public.

“Sen. Sherwin Gatchalian said the suspension order was “hasty and untimely” and would cause further frustration and chaos for hundreds of thousands of commuters, while Sen. Francis Pangilinan said the LTFRB could have opted for a solution that would not adversely affect commuters.

Sen. Paolo Benigno Aquino IV said the LTFRB could have simply fined Uber.  – With Alexis Romero, Marvin Sy, Delon Porcalla, Romina Cabrera