LTFRB says Uber must pay P190m fine for suspension to be lifted

August 26, 2017

The Land Transportation Franchising and Regulatory Board said Uber System Inc. (USI) has to pay a fibe of P190 million so their one-month suspension can be lifted.

LTFRB board member Aileen Lizada said “the board thus rule to grant the prayer of respondent USI to lift the order suspension imposed on August 14, 2017 and in lieu therefore imposes of fine of 190 million ( pesos)”.

This was contained in a nine-page order released by the LFTRB on Friday night. The order was signed by LTFRB Chairman Martin Delgra III and board members Ronaldo Corpus and Lizada, who is also LTFRB spokesperson.

LTFRB suspended the operation of Uber on August 14 due to continuous accreditation of new drivers in their system despite an earlier order of the board.

“The remaining number of days to be suspended is 19 times 10 million that is 190 million”, Lizada said. The money will be remitted to the national treasury.

Uber suspended the operation at 6:00 am of August 14 but resumed hours later after submitting a motion for reconsideration in the LTFRB.

“In counting the days , remember there was a day when Uber filed an MR (motion for reconsideration) and activated the system. We do not count that as they are suspended”, Lizada said.

In response Uber said, "​We're working hard to meet the conditions for the lifting of the suspension and hope to resume operations as soon as possible."

She said Uber has an average income of P7 million to P10 million from 150,000 trips in a day.

“In addition to the fine the board affirms the commitment of Uber remit the financial assistance and hereby directs to pay its TNVS ( transport network vehicle services) peer operators the amount of P19,949, 600 per day until the day when the services of respondent Uber will be restored”, she said.

Uber and Grab was initially fined with P5 million each after violating LTFRB regulations on July 11.

In a closed door meeting at the Senate on August 17, Uber offered to pay a P10 million fine to the board to lift the order of suspension.

Lizada said, “The online ride sharing services of respondent Uber will be restored when it has paid the amount of fine and the said financial assistance remitted”. Alanna Ambi/DMS