The Land Transportation Franchising and Regulatory Board (LTFRB) has just exacted a heavy penalty on Uber over their violations: a blanket suspension of their services.
In an official advisory dated today, August 14, 2017, the LTFRB suspended the accreditation of Uber System, Inc. (Uber) and issued a cease and desist order on the operation of their online booking app for one month.
The advisory itself did not state what the specific violations of Uber were. The order, however, comes after the heated debate regarding the transport network company's (TNC) operations wherein they continued accepting new transport network vehicle service (TNVS) drivers after the LTFRB suspended accepting new applications for relevant permits.
The LTFRB advisory also stated that they recommend that Uber “extend financial assistance to its affected peer-operators during the period of suspension”. The advisory further went on to say that the “accredited peer-operators would not have suffered the current predicament were it not for the predatory actions of the respondent user”.
Both Uber and Grab have been in the crosshairs of the LTFRB after it had been discovered that both companies have fielding new TNVS providers without proper accreditation from the LTFRB. The numbers released by the LTFRB point that 56,000 drivers were activated by the TNCs, though only slightly more than 3,000 have either a Provisional Authority (PA) or a Certificate of Public Conveyance.
The LTFRB had suspended accepting new TNVS applicants in July 2016.
The advisory of the LTFRB singled out Uber; no cease and desist order was issued against Grab.