Story updated to include interview with LTFRB Spokesperson Aileen Lizada.
Metro Manila (CNN Philippines, August 14) — The Land Transportation and Franchising Regulatory Board (LTFRB) suspended on Monday the operations of transport network company Uber.
In an interview with LTFRB Spokesperson Aileen Lizada, the LTFRB said Uber violated its July 26 order to transport network companies to stop accepting applications for accreditation of transport network vehicle services (TNVS) and their eventual approval or activation.
Lizada said while Grab followed this order, Uber activated at least three vehicles right the next day.
“This is an open defiance of the order dated 26 July,” she said.
The five-page order reads: “While the Board commiserates with the plight of Uber’s affected TNVS peers, after a thorough and painstaking deliberation, the Board is constrained to impose the penalty of One (1) month suspension on the accreditation of the Respondent Uber System Inc., and is hereby ordered to cease and desist its operation of their online booking application during the period of suspension.”
The Metro Manila Development Authority, the national police’s Highway Patrol Group, and the Land Transportation Office were advised of the measure.
Lizada said the suspension was effective immediately.
Uber Philippines said they received the government regulator’s order at 6 p.m. Monday.
“We are studying the order at the moment. We will update our riders and drivers as soon as we can,” said Uber Head of Communications Cat Avelino.
What does this mean?
The LTFRB’s order requires Uber to suspend the use of their transport network vehicles, even those with certificates of public convenience (CPCs) or provisional authority (PA).
Lizada also said Uber’s online system should not be working due to their suspension.
The advisory also “strongly recommends” Uber to extend financial assistance to its driver-partners during the suspension.
Lizada told patrons and users of the transport network vehicle service that the agency was aware of their concerns, but Uber could not be allowed to violate the law.
