Published: 6:57 p.m., Aug. 14, 2017 | Updated: 7:15 p.m., Aug. 14, 2017
The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended for a month the operations of transport network company (TNC) Uber after it defied its July 26 order not to accept and activate new drivers into its platform.
In response, Uber issued a short statement, saying: 鈥淯ber received an order around聽6 p.m. tonight聽(August 14) to completely stop operations. We are studying the order at the moment. We will update our riders and drivers as soon as we can.鈥�
In its cease-and-desist order that was released and took effect on Monday night, the LTFRB said that Uber was 鈥渋rresponsible鈥� when it continued to accept and activate new drivers into its platform.
It noted that what the TNC has done was 鈥渘ot about pushing innovation in the context of fair regulation,鈥� but 鈥渦nduly challenging the limit of fair regulation to continue to engage in business in this country.鈥�
鈥淭he objective of the board now is to strike a gentle balance between innovation and the law for the public good鈥� What takes precedence then? No doubt, it is the law. The law which defines fair and suitable regulation is the great equalizer in addressing and fulfilling the common good,鈥� the order read.
Recognizing that their order meant that thousands of Uber鈥檚 drivers would lose income for a month, the LTFRB recommended that Uber extend financial assistance to its affected drivers as a 鈥渇orm of good faith.鈥�
鈥淸T]heir accredited peer-operators would not have suffered the current predicament were it not for the predatory actions of [Uber],鈥� it said.
On July 26, the LTFRB ordered TNCs Grab and Uber to stop their acceptance and accreditation of new drivers as the agency ironed out issues concerning the ride-sharing industry.
However, the LTFRB found out that Uber defied its order, with the TNC even releasing a statement that partly read that 鈥渁pplications are being accepted but not processed鈥� by them. On top of this, the LTFRB was also able to activate three of its cars into Uber鈥檚 platform.
In its hearing early this month, the LTFRB maintained that it was clear in its order that no applications should be received by the TNCs to 鈥渁void raising false expectations鈥� among drivers that they may engage in the public transportation service.
During the recent congressional hearing on the ride-sharing industry, Uber said that it has to date accredited around 66,000 vehicles into its platform.
The board said that it recognized that the service provided by TNCs to the commuting public was 鈥渦ndeniably positive and beneficial.鈥�
It noted though that 鈥渢echnological innovation is but a tool to enhance human convenience but may not dictate what may be morally acceptable social human behavior.鈥� /atm