LTFRB imposes P190-M fine on Uber

By , on August 26, 2017


The agency explained that the amount of the fine was based on the ride-sharing firm’s daily average earnings and the number of days that it has been suspended.  (PNA PHOTO)
The agency explained that the amount of the fine was based on the ride-sharing firm’s daily average earnings and the number of days that it has been suspended.
(PNA PHOTO)

MANILA— The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered transportation network company, Uber, to pay a fine of PHP190 million before it could lift its suspension due to its activation of new drivers into its system.

The board also directed Uber to provide financial assistance worth PHP19.94 million daily to its 36,367 affected transport network vehicle service (TNVS) operators until its operations are restored.

The agency explained that the amount of the fine was based on the ride-sharing firm’s daily average earnings and the number of days that it has been suspended.

According to LTFRB, Uber’s daily income ranges from PHP7 million to PHP10 million with a daily ridership of at least 150,000 trips.

“The online ride sharing services of the respondent, USI (Uber Systems Inc.), will be restored when it has paid the amount of fine and the said financial assistance,” the LTFRB said in its ruling, which was released to the media late Friday.

“This order shall be without precedence and also without prejudice to the resolution of the petition to renew the accreditation filed by the respondent, USI,” it added.

Suspended for one month since Aug. 15, Uber has already served 11 days and has 19 days to go. With its maximum earnings set at PHP10 million multiplied by the remaining days, the LTFRB asked for PHP190 million.

The fine will be remitted to the national treasury.

Uber has earlier filed a petition asking the LTFRB to be allowed to pay a PHP10-million fine in lieu of its one-month suspension.

The LTFRB has directed Uber to cease and desist operations of its online booking applications.

In its order dated Aug. 14, the board held the TNC responsible for all its accredited “colorum” TNVS that were apprehended during the suspension period, if discovered, that they continue to accept passengers using their mobile application.

Uber has filed a motion for reconsideration to lift the suspension but LTFRB junked its appeal, saying that the activation of new drivers has led to the rise in the number of “colorum” TNVS with no certificate of public convenience or provisional authority.