Uber said it looks forward to discussions with regulators and it temporarily stopped accepting the applications of new vehicles.
Grab and Uber are currently in dispute with the Land Transportation Franchising and Regulatory Board (LTFRB) over the scope of regulation on ride-sharing services. This issue then led to investigations by Senate and House of Representatives.
The LTFRB asked Uber to explain why it defied an order against accepting new applications. The company said it stopped activating new vehicles on July 19, one week before the LTFRB ordered it to do so, according to ABS-CBN News.
Meanwhile, Martin Delgra, the chairman of the LTFRB, told lawmakers that he hoped to resolve the agency’s dispute with ride-sharing services by September.
Uber fined by LTFRB
The LTFRB fined Uber and Grab P5 million each, because of allowing some 50,000 vehicles without proper permits.
The companies admitted that they accepted new drivers despite the LTFRB’s order, citing strong passenger demand. Both companies said about 80% of their active drivers don’t have a PA or CPC franchise, according to Rappler.
But some drivers say it’s not their fault they are considered “colorum.” They point to the LTFRB’s earlier order stopping the processing of TNVS (transport network vehicles service) applications.
Aside from the hefty fine, the LTFRB also ordered Grab and Uber to clear out unregistered drivers by July 26 or face more fines.
But both companies filed separate motions for reconsideration. The LTFRB later agreed not to apprehend unregistered TNVS until it decides on the appeal.
While this came as a relief to Grab and also Uber users and drivers, this decision did not sit well with operators of taxis, jeeps, and vans: they slammed what they called the LTFRB’s preferential treatment, saying they too should be spared from apprehension while waiting for the approval of their franchise applications.