MANILA, Philippines — (UPDATE 4 – 9:59 p.m.) Transport network firm Uber suspended its operations Tuesday morning in compliance with an order it received from the Land Transportation Franchising and Regulatory Board the evening before.
Uber, which suspended operations 6 a.m. Tuesday, submitted a motion for reconsideration of the LTFRB order a few hours later, and then told the public it was resuming services as it waits for a decision.
The LTFRB decided late on Monday to halt the service over Uber’s defiance of an order to cease accepting new driver applications.
Uber is hugely popular in the Philippines, regarded by its users as more reliable and competitive than the country’s outdated public transport services.
The suspension led to an outpouring of anger by Filipinos on social media. Uber issued an email to users informing them of the suspension, entitled “we’ll be serving you again soon”.
In the appeal to the LTFRB, Uber said it had the right to due process and wanted a stay of implementation of the suspension.
“This means that Uber’s operations will continue until the motion is resolved,” Uber said in a Facebook posting.
“Over the course of this morning, tens of thousands of riders were left stranded, causing needless inconvenience, while drivers were unable to access the earning opportunities they rely on.
“We are looking forward to urgently resolving this matter.”
The LTFRB could not immediately be reached for comment on Uber announcing its services would restart right away.
The Philippines suspension is the latest setback this year to Uber, one of the most valuable startups in the world with a valuation upwards of $60 billion, which is struggling to recover from a series of scandals and is hiring a new leader.
We’ve filed a motion for reconsideration with the LTFRB and will be resuming and continuing operations until the motion is resolved. pic.twitter.com/CNqXc9cjhw
— Uber Philippines (@Uber_PH) August 15, 2017
See also:
WATCH | LTFRB suspends Uber for 1 month; Poe calls move ‘cruel and absurd’
The month-long suspension order by the LTFRB stunned Senate Public Services panel chief Sen. Grace Poe, who called it “both cruel and absurd.”
She set an emergency hearing of all parties on Wednesday (August 16), citing the need to “exercise congressional oversight over this public harm that is sure to befall our people” because it punishes tens of thousands of innocent commuters.
Senator Paolo Benigno Aquino IV said the suspension is “punishing the riding public and the drivers who are earning from (Uber’s) operation.”
“If they wanted to penalize Uber, the LTFRB could have issued a fine. Instead, they suspend operations leaving the commuters with less options,” he said. “Suspending Uber will hurt the riding public more than the company itself.”
Senator Joel Villanueva urged Uber and the LTFRB to “come up with an amicable resolution. At the end of the day, the riding public will suffer the most from a failure to reach a workable solution.”
“We also want the LTFRB to clearly define the ‘predatory actions’ of Uber which warranted the suspension,” he added.
PH first to regulate app-based operations
The Philippines was the first Southeast Asian nation to regulate app-based car-hailing operations after drawing up rules in 2015.
Last year the LTFRB suspended the acceptance and processing of applications for all ride-sharing services, including Uber, to study further how to regulate the industry.
Uber said it continued to accept new applications for drivers amid strong demand for the service, but did not process them.
A five-page LTFRB suspension order made available on Tuesday said the suspension was due to the “irresponsible” behavior of Uber in “unduly challenging the limit of fair regulation” by continuing to accept driver applications.
“We apologize to our riding public for this inconvenience,” Uber said in a statement. “We will do our best to resolve this quickly.”
“We are deeply committed to serving our riders and driver partners, and are doing everything we can to resolve this situation at the soonest possible time,” it added.
Dismayed drivers and operators flocked to Uber’s Mandaluyong office on hearing news of the suspension of its operations.
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They said the firm had not promised any held despite the LTFRB’s admonition for it to extend financial assistance to its partner-drivers and operators for the month when they stand to lose their incomes, especially those who are still paying for their vehicles.
On the other hand, lawyer Vigor Mendoza, the counsel for taxi operators, said they plan to file criminal charges against Uber for its “colorum” operations.
A text from Mendoza said “various transport leaders from all modes will file criminal charges against Uber citing the penal provisions of the Public Service Act” and “also file deportation proceedings against its foreign officers as being undesirable aliens.”
Meanwhile, on social media, netizens vented on the difficulty of booking rides with the other transport service firm, Grab, which they also noted was jacking up its rates.
LTFRB board member Atty Aileen Lizada said they are monitoring Grab’s rates, stressing that it can only double these based on an order issued in December. As of 8:30 a.m., Grab rates had surged by 1.4 times.
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