Uber offers to pay up to P30 M in fines

MANILA, Philippines -  Ride-sharing company Uber yesterday offered to pay stiffer fines of P20 million to P30 million in exchange for the lifting of the month-long suspension imposed by the Land Transportation Franchising and Regulatory Board (LTFRB).

The offer was made even as the suspension order issued on Monday by the LTFRB stays.

During a closed-door meeting at the Senate, Uber executives led by regional manager for Asia Michael Brown and Philippine general manager Laurence Cua offered to pay hefty fines for violating LTFRB regulations and to compensate their drivers.

The meeting was arranged by Senators Grace Poe and Joseph Victor Ejercito to broker an agreement between Uber and the LTFRB and help tens of thousands of commuters affected by the firm’s suspension.

Poe chairs the Senate committee on public services, with Ejercito as vice chairman.

LTFRB Chairman Martin Delgra III attended the meeting with board members Aileen Lizada and Ronaldo Corpuz.

Uber executives offered to put up around P20 million to P30 million in fines and compensation for their drivers.

Uber has an estimated 66,000 units in the country, but fewer than 4,000 units have provisional authority to operate from the LTFRB.

Uber and another transport network company (TNC), Grab, had been fined P5 million each by the LTFRB for operating colorum vehicles.

The LTFRB found that Uber violated the board’s order to stop accepting and activating new drivers.

Ejercito proposed to the LTFRB to lift the suspension order, but Uber will not be allowed to collect its share for several months.

The LTFRB and Uber failed to reach a consensus.

LTFRB officials advised Uber to file another appeal to study its offer to convert the suspension to paying stiffer fines.

The LTFRB set a hearing on Aug. 23 to resolve the petition, including the possible lifting of Uber’s suspension.

Poe told reporters that she was “happy and sad” about the outcome of the meeting, saying Uber’s offer was generous.

“Our regulations are ma-king the resolution of this issue slower while tens of thousands of commuters are suffering,” she said.

Uber faces more raps

Transport groups yesterday filed a case against Uber before the Quezon City Prosecutor’s Office for allegedly violating the Public Service Act.

This is another legal hurdle for Uber, whose operations remain suspended.

Among the complainants was Vigor Mendoza, chairman of the Pagbabago ng Industriya ng Transportasyon.

Mendoza said Uber must be held accountable for their actions.

Named respondents were Uber officers and board of directors Rob Van Der Woude, Jacqueline Laurel, Ma. Elena Hernandez-Cueva, Manuel Cosico, Charlotte Feraren Agumba-Goco and Karen Sammis Walker.

Uber drivers Joseph Raville and Jenell Flores, who allegedly engaged in colorum operations, were included in the complaint.

‘Uber alternative’ warned

The LTFRB warned a new ride-sharing company called “Uber alternative” to cease its illegal operations or face sanctions.

Arcade City yesterday launched a mobile application where riders and drivers can book rides using a “peer to peer model.”

Arcade City said it would fill the void after the LTFRB suspended Uber’s service.

Lizada said Arcade City was not authorized to operate as a TNC since it has yet to be accredited by the regulatory agency.

‘Ride public transportation’

A party-list congressman wants government officials and personnel to use public transportation so they will experience the suffering that people go through in commuting.

“Public service requires concern for the people being served. Public service improves when it is rendered with compassion,” Rep. Neil Abayon of Aangat Tayo said in filing House Bill 6195, or the proposed Public Servants Commuting through Public Transport Act.

Asked to comment on the bill, Foreign Affairs Secretary Alan Peter Cayetano said he has no problem with the proposal.

“Actually, we in the Department of Foreign Affairs should go through the normal process in applying for a new passport or for renewal, instead of using the courtesy lane,” Cayetano said. “We can do it individually on our own.”

Other congressmen said it could be contained in an issuance signed by the leaders of the three branches of government.

Under Abayon’s bill, all public officials and civil servants, including Cabinet members and lawmakers will be required to use public transportation at least once a month during rush hours.

The measure also prescribes economy class as the mode of air travel of all elected and appointed public officials regardless of rank.

Abra Rep. Joseph Bernos lauded the LTFRB for going after Uber and Grab. But he asked the regulatory agency to sanction drivers and operators of public utility vehicles who violate the laws. – With Romina Cabrera, Jess Diaz, Artemio Dumlao