MANILA- The Land Transportation Franchising and Regulatory Board (LTFRB) on Sunday explained the basis for the P190 million fine it slapped against ride-hailing service Uber in exchange for lifting its suspension order.
Speaking to DZMM, LTFRB spokesperson Aileen Lizada said the fine is based on the remaining 19 days of the suspension order multiplied by Uber's average daily income of P10 million.
"So yung P190 million is based on the remaining number of days [of the suspension order]," she said.
Lizada clarified that the computation is also based on data submitted by Uber.
"This is the first time sa history ng LTFRB wherein a suspension is converted into a fine," she said.
The transport regulator suspended Uber over alleged franchise violations starting August 14. Uber earlier offered to pay P10 million to lift the order.
Aside from the fine, the LTFRB also ordered Uber to pay P19.9 million daily to its partner-drivers, which Lizada explained is based on Uber's own manifestation that they will extend financial assistance to its drivers until its services are restored.
The ride-hailing service on Saturday said it is "working hard" to meet the transport regulator's requirements.
"We're working hard to meet the conditions for the lifting of the suspension and hope to resume operations as soon as possible," Uber said.
Lizada however clarified that Uber has the option to sit out the suspension order if it refuses to pay the fine.
"People tell us that they will allegedly pay daw next week. Others are saying that they will file a legal case or action," she said, noting that Uber has not officially communicated with them.