Uber lowers offer: P10-M fine

MANILA, Philippines - Ridesharing company Uber yesterday appealed to the Land Transportation Franchising and Regulatory Board (LTFRB) to fine them P10 million instead of continuing its one-month suspension.

During a closed-door meeting at the Senate last Wednesday, Uber executives offered to pay up to P30 million in fines for violating LTFRB regulations and to compensate their drivers.

Uber, pleading before the regulatory board yesterday to accept a fine instead of the suspension, said this will be a “solution to reduce the burden on the Filipino rider and driver community.” 

LTFRB spokesperson Aileen Lizada said the transport network company (TNC), in its manifestation submitted to the board, offered to pay P10 million in fines in lieu of the suspension and requested a hearing on Aug. 23.

A copy of the manifestation filed by Uber has yet to be released but Lizada said there is no explanation as to why Uber set the offer at P10 million. 

Aid depends on earnings

Uber said it is also set to submit its proposed financial assistance for its affected transport network vehicle service (TNVS) drivers “as we work urgently to resolve this matter, and hope to be able to serve the Philippines again as soon as possible.”

Following the filing of the manifestation, Lizada said the regulatory board “will not be pressured to fasttrack” proceedings. 

The financial assistance will depend on the driver’s average earnings in the past 28 days, Catherine Avelino, Uber head of communications, said in a text message. 

Lizada said the financial assistance of Uber would prove to be a test of its goodwill towards its drivers, who are the ones most affected by the suspension.

“It is part of our order, we strongly recommended Uber to extend financial assistance as an expression of goodwill... While the suspension stays, it is the duty and responsibility of Uber to look after its TNVS,” Lizada told reporters.

She said they will have to determine if the compensation provided by Uber is sufficient as they do not want TNVS drivers shortchanged. 

Grab, Uhop told: Take in Uber drivers

Three days into Uber’s suspension, the LTFRB also yesterday released a resolution directing accredited TNCs Grab and Uhop to accommodate affected TNVS for the remaining duration of the suspension.

Under Board Resolution No. 19, Series of 2017, Uber’s accredited drivers will be allowed to transfer to Grab and Uhop, even those without franchises or certificates of public convenience. 

They will have to show proof of accreditation by Uber as well as proof of insurance coverage as TNVS before it will be allowed to transfer. 

The TNVS will be covered by terms, conditions and existing policies of the two TNCs, including incentives and similar benefits while Grab and Uhop will be required to submit a daily report on their compliance.

Grab said it will comply with the order.