Philippines transportation authorities banned Uber for 1 month after the company violated the instructions given by the authorities.
Uber had to withdraw its services in the Philippines for a month after ban orders issued by the national regulator's. The ride-hailing giant Uber receives a month ban in the Philippines for not following the instruction of the country's authority.
The Land Transportation Franchising and Regulatory Board (LTFRB) of the country put a banned on the U.S. ride-sharing company for a month. The board accused the Uber of allowing the excessive number of unregistered drivers to drive the cab and cease its services on Monday. The company filed an appeal against the order and continues the service until Tuesday when the ban is officially confirmed.
The LTFRB issued the order effective from 14th Aug 7:30 pm local time and instruct temporary suspension on the Uber services for a month.
On the issue, a spokesperson from the Uber said to Techcrunch “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”.
The incident originates back in July when the LTFRB has requested to both Uber and the rival Grab to stop recruiting more drivers for the service. Both the companies are warned to stop allowing new drivers to join the services in order to catch up the previous bundle of drivers applications for the permit.
Due to the continuous recruitment by both the ride-hailing companies there is a huge number of pending applications of the driver's seeking the driving permit. LTFRB also asked the companies not to allow the drivers to hit the road until the authorities show them a green light.
According to the reports both the companies were fined with $100,000 for allowing a large number of unregistered drivers to grab the wheel.
ADVISOR to all Uber TNVS pic.twitter.com/MpeeQl2ttG
— Official LTFRB (@LTFRB) August 14, 2017
But within a month Uber is caught violating the instructions given by the board hence faces the penalty. On the other hand, Grab seems to be providing its services normally which shows it took the warning seriously. This ban on the Uber for a month is definitely profitable for the Grab as all the Uber users will turn to it for ride-sharing.
The Philippines is one of the major contributing market for the Uber business, one month ban from the authorities will make a huge impact on the profits. Along with the Singapore Uber have a good hold in these two Southeast Asian markets and garner profitable revenue.
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