LTFRB explains basis for P190-M fine on Uber to lift suspension

The Land Transportation Franchising and Regulatory Board (LTFRB) on Saturday clarified that the P190-million fine that Uber must pay to cut short its 30-day suspension was based on the transport network company's average daily earnings.

"Inaral namin 'yung average daily income ng Uber. Naglalaro po sa P7 to P10 million a day," LTFRB spokesperson Aileen Lizasa said in an interview on radio dzBB.

Lizada said that the P7 to P10 million earnings per day of Uber is based on the 25 percent share it gets from the booking fees from its partner-drivers multiplied by an average 150,000 daily trips.

"Ang remaining days ng suspension is 19 days kaya 'yung P10 million times 19 days na naiwan... that's how we arrived with the amount of P190 (million)," the LTFRB official said.

The LTFRB late Friday granted Uber's prayer for the lifting of its one-month suspension on the operation of thousands of transport network service vehicles or ride-sharing cars if it paid a penalty of P190 million, several times higher than the P10 million the transport network company had offered to pay.

Uber has served 11 days of the 30-day suspension, which started August 15. 

The LTFRB issued a one-month suspension order against the company for defying an earlier order on accepting new applications from drivers. 

Uber filed for a motion for reconsideration, but the LTFRB denied the appeal.

The company then asked the transport regulator to let it pay a fine of P10 million instead of heeding a one-month suspension. 

Lizada also clarified that Uber has an option to pay the P190-million penalty or serve the remaining days of its suspension. It should also continue providing financial assistance to affected drivers until the suspension is lifted.

"Sila may kahilingan na i-convert, pero hindi pwede 'yung P10 million... Ang sinasabi po ng LTFRB, if you want conversion into fine okay. Ang fine is P190 million and give us proof of compliance na binayaran ninyo 'yung mga TNVS ninyo during the period of suspension 'yan ho 'yon," she said.

"Ang paramount consideration ng LTFRB is the riding public but as we consider the riding public kailangan din namin i-address 'yung violations ng Uber so it is for the convenience of the riding public but you are not allowed to violate the laws. So ibalanse po natin," she added. — MDM, GMA News