Uber offers to pay P10m fine, asks LTFRB for hearing over suspension

August 17, 2017

The Land Transportation Franchising and Regulatory Board (LTFRB) said Thursday Uber Systems Inc  submitted their pleading over their one-month suspension and offered to pay a P10 million fine.

“We are in receipt of Uber’s manifestation and motion dated August 17 wherein they offered they are paying P10 million fine in new of suspension”, LTFRB board member Lizada said in a message on Viber.

“They submitted a sealed container with the folders of the Transportation Network Vehicle Service (TNVS) and proposed financial assistance the same for board’s consideration”, she added.

LTFRB ordered the one-month suspension of Uber on August 14 for violating the board's order to cease the activation of new drivers.

Lizada said Uber requested for a hearing on August 23.

LTFRB allowed Grab and UHop to use Uber accredited TNVC in a board resolution Thursday.

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

LTFRB ordered another Transportation Network Company (TNC) Arcade City to cease their operation on Wednesday.

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

It said Arcade City is considered a TNC and it did not coordinate with the LTFRB before operating.

Arcade City said LTFRB should know the difference of their services compared to Uber.

“Arcade City does not provide pre-arranged transportation services for compensation and therefore does not fit the LTFRB definition of a transportation network company”, Arcade City said in their facebook page.

“Driver entrepreneurs may freely identify as Arcade City driver but Arcade City does not require payment from riders or drivers”, they added.

All transport network vehicle services (TNVS) operating under Arcade City are colorum, she said.

In their Facebook page, Arcade City said “Arcade is recruiting and activating drivers same day all across the Philippines to provide service in the gap Uber’s abrupt withdrawal yesterday”.

Arcade City said the suspension "put 66,000 drivers out of job and stranded tens of thousands of riders". Alanna Ambi/DMS