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Asia

Uber runs afoul of regulators in yet another country, ignores cease and desist order

Uber said Tuesday that it would be ignoring an order from the Philippines‘ transport regulator to temporarily cease and desist operations.

The U.S.-based ride-hailing company said it has filed a motion for regulatory reconsideration after the Land Transportation Franchising and Regulatory Board (LTFRB) issued an advisory on Monday, wherein it said it had suspended Uber’s accreditation for a month. It ordered the tech giant to cease and desist operation of the booking app.

In response, Uber said early morning Tuesday it would comply with the order. Soon after, it said that in response to “overwhelming rider and driver demand,” it had filed a motion with the LTFRB to reconsider the suspension.

“This means that Uber’s operations will continue until the motion is resolved. Consequently, we will be resuming serving Metro Manila and Cebu,” the ride-hailing firm said in a Facebook post. It added that the order from the regulators left “tens of thousands of riders” stranded on Tuesday morning, while drivers were “unable to access the earning opportunities.”

Uber urged the regulators to resolve the matter quickly.

According to local media reports, however, the regulators said that Uber drivers were still not allowed to pick up passengers despite the motion for reconsideration. The regulators were not immediately available for comments when contacted by CNBC.

CNBC reached out to Grab, an Asia-based Uber rival, asking if its operations in the Philippines will also be affected, but did not immediately hear back.

The decision to suspend Uber’s operations came amid an ongoing dispute between the LTFRB and ride-hailing services. Reuters reported that the regulatory disputes have prompted investigations by both chambers of the Philippine Congress.

In July, media reports said the regulators fined both Uber and Grab 5 million pesos ($97,570.50) each for letting some drivers operate without permits.

Last year, the regulators suspended the processing of applications of ride-hailing services that included Uber and Grab in order to review existing policies on how to regulate the industry better. That meant new drivers who signed up with either operator would not have a legal permit from the authorities.

In its Monday advisory, the LTFRB said it “strongly recommended” Uber to extend financial assistance to “its affected peer-operators during the period of suspension.” The notice called it an “expression of good faith” toward competitors that suffered due to Uber’s “predatory actions.”

In April, Uber resumed its ride-hailing services in Taiwan after a two-month suspension that followed fines from the government.

— Reuters contributed to this report.

Source: cnbc china
Uber runs afoul of regulators in yet another country, ignores cease and desist order

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