LTFRB keeps one-month ban; Uber offers to pay P10 million

By Riza Lozada 

Despite an offer from global ride-sharing firm Uber to pay a P10-million fine, regulator Land Transportation Franchising and Regulatory Board (LTFRB) stood its ground in imposing a one-month suspension on the company and even encouraged transport network vehicle services (TNVS) accredited by Uber to jump to its competitors. 

The LTFRB said Uber vehicles can be accommodated by transportation network companies (TNCs) Grab and UHOP to ease the burden of commuters affected by the suspension of its operations.

In a resolution issued last Thursday, the LTFRB said the TNVS should only show their proof of accreditation by Uber and insurance coverage. Grab and UHOP should submit to the LTFRB a list of operated TNVS on a daily basis.

“The LTFRB decision is based on the urgency of the matter for public service particularly the riding public for their benefit and convenience as well as the TNVS who were inconvenienced by Uber’s irregular conduct,” LTFRB board member and spokesperson Aileen Lizada said.

Uber has filed a motion for reconsideration to lift the suspension but LTFRB junked their appeal citing that its activation of new drivers has led to the rise in the number of “colorum” TNVS which have no certificates of public convenience or provisional authority.

Uber has filed a manifestation before the LTFRB asking that it pay a P10 million fine in lieu of the one-month suspension of its operations.

Uber also declared its intent to provide financial assistance for its affected TNVS partners .

Lizada said the LTFRB has set a hearing on Uber’s plea on August 23.

“We will be hearing Uber’s side. If there is a need to hear the TNVS as regards to their financial assistance, we will do the same. We will not be pressured to fast track everything,” Lizada said.

Uber and the LTFRB had a meeting Wednesday with the Senate Committee on Public Services to settle the impasse over the accreditation of TNCs.

Committee chairperson Sen. Grace Poe stated that the meeting was conducted to ease the burden of passengers affected by the suspension.

During the meeting, Uber Technologies Southeast Asia manager Michael Brown apologized to LTFRB Chairman Martin Delgra III for any misunderstanding caused by its continuing acceptance of new drivers into its system despite an order halting activation.

“If there’s been a misunderstanding in the past, that’s on us and I apologize for that misunderstanding,” Brown said.

LTFRB, in its suspension order dated August 14, directed Uber to cease and desist the operations of its online booking applications.

It is holding the TNC responsible for all its accredited “colorum” TNVS that were apprehended during the suspension period, if these were discovered, that they continue to accept passengers using their mobile application.

LTFRB has also ordered a new ride sharing company, Arcade City, to cease operations as it may have engaged in “colorum” operations.

Lizada said her office has not received any application from Arcade City to be considered as a transportation network company (TNC).

“Arcade City is not authorized to operate as a TNC as they were not accredited by the LTFRB. Their transport network vehicle services (TNVS) are colorum,” Lizada said in an interview with reporters.

In its advisory released Wednesday afternoon, the LTFRB said that Arcade City has not coordinated with the Board, thus, it cannot operate.

“LTFRB strongly warns Arcade City to stop all bookings made with the use of this kind of application or platform. Otherwise, it will be constrained to take legal actions against Arcade City and its illegal TNVS operators considered as colorum,” LTFRB added.

On Wednesday, US-based ride sharing company Arcade City posted on its Facebook page that it is recruiting and activating drivers same-day across the Philippines brought about by Uber’s suspension.

It has launched its mobile app this month to the Apple and Android app stores which is now available in the country.

“Arcade City is recruiting and activating drivers same-day all across the Philippines to provide service in the gap left by Uber’s abrupt withdrawal yesterday — which put 66,000 drivers out of a job and stranded tens of thousands of riders,” it said in a statement.

The company said it embraces a new peer-to-peer model of ridesharing wherein drivers are free to build up their own transportation businesses like true entrepreneurs instead of controlling them from a corporate headquarters.

Drivers are free to set their own rates, build their own recurring customer base, and offer additional services like deliveries or roadside assistance. Riders can likewise review driver profiles in advance and choose the driver they prefer.

Arcade City has set up a Facebook group for drivers in the Philippines that are interested to work for the company.