LTFRB orders Uber to explain why it disobeys order
The Land Transportation Franchising and Regulatory Board (LTFRB) ordered Uber Systems Inc. to submit a written explanation about continuous activation of drivers despite the order of the board.
"It was found out that the respondent USI willfully and contumaciously violates the said directive contained in the order dated July 26 2017", LTFRB said in a show cause order sent by LTFRB board member Aileen Lizada on Viber.
LTFRB said Uber must submit their explanation in a hearing on August 2.
"Failure on the part of the respondents USI to answer in writing and to appear within the period prescribed herein and to appear with this board on the date mentioned above, shall be considered as a waiver on its part to be heard", LTFRB said in the show cause order.
The case will be decided based on the evidences and records presented without Uber's explanation if they failed to appear in the hearing , it said.
Uber and Grab were fined on July 11 with P5 million each for violating the rules set by the LTFRB. In the hearing both admitted they have been accepting new drivers despite an order of suspending applications for new drivers on July 2016.
Uber warned of higher fare and worsening traffic in Metro Manila because of the suspension of transport network vehicle services accreditation.
Laurence Cua, general manager of Uber Philippines told reporters about 200,000 rider requests were unfulfilled on a weekly basis because of lack of partner drivers and stringent government regulations.
“Since the fourth quarter of last year, the gap between supply and demand is increasing. The demand is going up and the supply having a hard time catching up,” Cua said.
At present, there are 30,000 active Uber drivers as of July from 66,000 drivers last year. Of the total, 2,000 operators have Certificate of Public Convenience. Alanna Ambi/DMS