LTFRB issues show-cause order against Uber

The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday issued a show-cause order against Uber Systems Inc. for supposedly defying an order halting the activation of new drivers.

"Upon the conduct of investigation by the board ... it was found that respondent willfully and contumaciously violates the said directive contained in the Order dated 26 July 2017, specifically, by continuing to accept additional accreditation of TNVS and/or activation of accounts," the show cause order read.

The LTFRB ordered Uber to submit a written explanation during a show-cause hearing in Congress on Wednesday, August 2, in light of a separate order for Transport Network Companies (TNCs) to stop activating new drivers starting July 26.

Uber earlier said it stopped processing applications starting July 19.

"At Uber, we've actually halted activations since July 19th," Uber Systems Inc. General Manager Laurence Cua said in a briefing in Makati City.

"This was even before the LTFRB issued the legal order on July 26th so we've actually been in compliance with the request or the order to stop activations for almost two weeks now," he added.

In the meantime, Cua said Uber continued to accept applications which were not being processed by the company.

"We basically stopped the activation of new vehicles or drivers who want to get in on Uber right now. But, in the meantime, we are very optimistic naman kasi that with the ongoing discussions with the LTFRB, that there will be a path forward," he said.

"So, with that, we continue to educate partners and at least accept their applications for now, but we do not activate at the moment," he added. — VDS, GMA News