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Uber pays Php 190 M fine; resumes operations in Manila

Uber pays Php 190 M fine; resumes operations in Manila image

AutoIndustriya.com / Uber | August 29, 2017 18:46

Uber fully complies with LTFRB requirements and resumes services

On August 14, Uber System, Inc. (Uber) was issued a cease and desist order for allegedly accepting new transport network vehicle service (TNVS) drivers despite a moratorium by the Land Transportation Franchising and Regulatory Board (LTFRB) to stop. The suspension was meant to last for one month, with Uber initially filing a motion for reconsideration, which was denied by the LTFRB. Uber then offered to pay Php 10 million to lift the suspension. Like the previous motion, it was once again rejected by the LTFRB.

After public outrage and a meeting with senators, the LTFRB said that Uber may resume suspension if they paid a Php 190 million fine. The LTFRB also said that Uber has to compensate their drivers during the suspension period. The Php 190 million fine was based off the 19 day remaining suspension order, multiplied to Uber's average daily income of Php 10 million.

Uber pays Php 190 M fine but is still suspended

Today, August 29 and two weeks after the suspension, Uber has paid the imposed Php 190 million fine in exchange for lifting the month-long suspension. Despite the payment being made, LTFRB officials say the company has yet to show that they have compensated their drivers during the two week suspension period.

Until officials receive proof that Uber has paid Php 279.29 million as compensation to their drivers, the transport network company cannot resume operations just yet. For now, both loyal Uber riders and their 36,000 Uber drivers will still have to wait before they can resume hailing the ride service app once again.

Uber pays Php 190 M fine; still suspended until proof of driver compensation

UPDATE: According to Uber, they have resumed their services as of 5:00 PM, August 29, 2017 upon complying with the LTFRB's requirements.