LTFRB slaps P190M fine on Uber in exchange for lifting suspension

ABS-CBN News

Posted at Aug 25 2017 11:20 PM | Updated as of Aug 26 2017 10:51 AM

LTFRB also orders Uber to give P19.9 million daily assistance to partner-drivers 

MANILA (UPDATED) - The Land Transportation Franchising and Regulatory Board on Friday fined Uber System Inc. P190 million and ordered the ride-hailing service to pay P19.9 million daily to its partner-drivers in exchange for lifting its one-month suspension.

"Wherefore, premises considered, the Board thus rule to grant the prayer of Respondent USI to lift the order of suspension imposed in its Order of 14 August 2017 and in lieu thereof, imposes a fine of One Hundred Ninety Million Pesos, the amount of which when paid will be remitted to the national treasury," the LTFRB order read.

The transport regulator also ordered Uber to pay its partner-drivers a P19.9 million daily financial assistance until its services are restored.

"In addition to the fine imposed, the Board affirms the commitment of the Respondent USI to remit the financial assistance and hereby directs to pay its TNVS peer-operators the amount of P19,949,600 per day until the day when the service of the Respondent USI will be restored," the order read.

LTFRB spokesperson and board member Aileen Lizada told DZMM the amount of fine was based on Uber's income.

"P190 million [was] based also on the data na binigay ng Uber. They have 150,000 trips per day. Ito ho ang income nila, somewhere from P7 to P10 million per day," she said.

"Either they sit out the suspension or they pay the fine immediately," she added.

The LTFRB fined Uber System Inc. P190 million and ordered the ride-hailing service to pay P19.9 million daily to its partner-drivers in exchange for lifting its one-month suspension.

Senator Grace Poe, chair of the Senate committee on public services, welcomed the LTFRB's order but said it should have released the decision earlier.

"The payment of a hefty P190 million penalty as a pre-condition before it can resume operations should be enough to make Uber rethink its actions and reevaluate its strategy in testing the extent of government regulations," Poe said in a statement.

"However, I am quite disappointed that the LTFRB decision was issued late Friday afternoon, effectively taking out any opportunity for Uber to pay the penalties," she added.

Uber earlier offered to pay P10 million to lift its one month suspension, which began on August 14.

Uber and rival Grab were previously fined P5 million each for defying a moratorium on accrediting new drivers.