Uber has faced a suspension from its online booking services in Philippine for one month. Philippine Land Transportation Franchising and Regulatory Board (LTFRB) has strictly ordered a cease and desist against the U.S.-based ride-hailing firm on Monday. This was as a result of the ride-hailing firm refusal to comply with the government instruction on recruiting new drivers. This follows after an instruction issued in July by Philippine national regulator to give it time to catch up on a backlog of applications for drivers seeking ride-hailing permits. The instruction was for Uber and Gab to stop recruiting new drivers.
to all Uber TNVS pic.twitter.com/MpeeQl2ttG
— Official LTFRB (@LTFRB) August 14, 2017
The Both Companies were fined closely “US$100,000” for recruiting large number of drivers without proper registration. They were issued a instruction to clean up the act and were allowed to register new drivers. This was on the basis that they won’t hit the road until they get an order from the authorities. Uber has disobeyed this instruction while Gab still comply to it.
An appeal was lodged by the company initially and continued its service but the temporal suspension was confirmed on Tuesday.
“We are disappointed with the LTFRB’s decision to deny our Motion for Reconsideration, and will comply with the Order. We look forward to urgently resolving this matter, and thank the public for its support over the last 24 hours,” a spokesperson stated on its social media channel.
Gab confirms its amendment on prices to include a cap on surge fees in order to manage the high demand rate.
Philippine and Singapore has been noted as the two major market place for ride-hailing in Southeast Asia. This two regions are the major market where Uber has reached profitably. Uber has gone into issues in most Asia countries.
Several netizens in the Philippine have questioned the government on the strict law enforcement towards Uber that does not seem to apply to other forms of public transportation. Netizens also have called upon the government to solve land transportation issues.
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