MANILA, Philippines - Transport network company Uber Systems Inc. ponders its next move as the Land Transportation Franchising and Regulatory Board (LTFRB) granted its appeal to pay a fine – pegged at P190 million – for the lifting of the suspension of its services.
In a nine-page order released to the media Friday night, the LTFRB said the amount should be commensurate to the penalty of suspension imposed on Aug. 14.
Catherine Avelino, Uber’s head of communications, said it is “working hard” to meet the conditions of the LTFRB so the suspension would be lifted and that the company hopes “to resume operations as soon as possible.”
The LTFRB said the P190 million will be remitted to the national treasury.
The order was signed by LTFRB chairman Martin Delgra III and board members Ronaldo Corpus and Aileen Lourdes Lizada.
The LTFRB based the amount on the daily earnings of Uber, which the ride-sharing services said ranges from P7 million to P10 million through 150,000 trips a day and multiplied by the remaining 19 days it is supposed to be suspended.
“The online ride-sharing services of the respondent USI (Uber) will be restored when it has paid the amount of fine and the said financial assistance remitted,” the resolution read.
Uber was suspended after the board discovered it violated an earlier order prohibiting the acceptance of applications of transport network vehicle services (TNVS) .
The LTFRB also directed Uber to extend financial assistance to its 36,367 TNVS peer operators affected by the suspension in the amount of P19,949,600 daily until the service resumes operations.
“Proof of compliance is also imposed, the same to be evidenced by a certification from the respondent’s depository bank,” the order said.
Uber earlier made a commitment to extend financial assistance to its drivers affected by the order.
Uber can pay the amount at the earliest on Tuesday as the LTFRB is closed during weekends and holidays.
Poe backs LTFRB’s order
Sen. Grace Poe, chair of the Senate committee on public services, supported LTFRB’s decision to impose a hefty fine against Uber, but said that it should have come out with the ruling earlier.
Poe said the fine on Uber should serve as a warning to the company against failing to comply with the orders of the LTFRB as the government regulatory body.
Poe, along with Sens. JV Ejercito and Paolo Benigno Aquino IV, have been working with the LTFRB and Uber to come up with a solution so that the company could resume operations and serve the riding public, who are clamoring for more viable transportation alternatives.
Poe, however, aired disappointment on the issuance of its decision late Friday afternoon, “effectively taking out any opportunity for Uber to pay the penalties.”
“If the LTFRB had allowed Uber to operate right away, then this could have served as a great relief to our people, most of whom rely on TNVS due to the comfort, reliability and safety they provide,” Poe said.
The LTFRB’s suspension order sparked public outrage as some 66,000 vehicles were taken off the streets.
Hundreds of thousands of Manila commuters find Uber and its ride-sharing rivals welcome alternatives to the country’s notoriously poor and overcrowded buses and trains, run-down taxis and irascible cab drivers.
The LTFRB last year imposed a moratorium on the processing of new applications for ride-sharing services as it studied how to regulate a growing industry.
Officials said while Southeast Asian rival Grab eventually followed the directive, Uber defied it, while other transport groups accused Uber of acting above the law.
Uber said this month it was accepting new applications for vehicles but was not processing them pending its discussions with regulators.
It also urged the government to simplify the accreditation process, with a representative telling a congressional inquiry: “We cannot impose 1900s regulations on today’s technological innovations.”
The LTFRB is also asking Uber to have insurance for the protection of drivers and passengers. – With Marvin Sy, AFP