Ridesharing app Uber on Tuesday warned of higher fare and worsening road traffic in Metro Manila with the the suspension by the Land Transportation Franchising and Regulatory Board of transport network vehicle services accreditation.
Uber Philippines general manager Laurence Cua told reporters about 200,000 rider requests were unfulfilled on a weekly basis because of the lack of partner drivers and the stringent regulations from the government.
Cua said these passengers struggled to find other means of transportation, or decided to bring their own vehicles, which further worsened the traffic situation in Metro Manila.
He said 67 percent of Uber riders used to drive their own vehicles.
“Since the fourth quarter of last year, the gap between supply and demand is increasing. The demand is going up and the supply [is] having a hard time catching up,” Cua said.
The Land Transportation and Regulatory Board announced on July 22 the suspension of TNVS applications. Cua said about 14,000 riders were unable to book a ride because the drivers were worried that they would be apprehended.
“We also saw prices rising about 17 percent,” he said.
There were 30,000 active Uber drivers as of July, down from 66,000 drivers last year. Of the total, 2,000 TNVS operators had certificate of public convenience.
“Uber actually halted activation since July 19. This was even before the LTFRB issued the legal order. We actually have been in compliance with the request to stop activation for almost two weeks now and were are looking forward to explain our side and explain what we’ve done and to ensure that we’re in full compliance with LTFRB order,” Cua said.
LTFRB ordered Uber and Grab on July 26 to stop accepting new transportation network vehicle service applications and submit an updated list of the accredited TNVS as of June 30, 2017.
LTFRB also ordered the two ride-sharing apps to stop acceptance of additional accreditation of TNVS and/or activation of their accounts into their respective systems.
“Failure to do so, the board shall impose the appropriate sanction on the erring or non-compliant respondent,” the regulator said.
LTFRB also ordered Grab and Uber to pay P5 million penalty each for violations of the terms of their accreditation.
