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Uber pays P190-M fine


Ride-hailing company Uber Systems Inc. settled yesterday the P190-million fine imposed by the Land Transportation Franchising and Regulatory Board (LTFRB) in lieu of the month-long suspension order.

The LTFRB, however, clarified that despite paying the hefty fine, Uber’s operation remains suspended until it proves that it has also paid its drivers P279.29 million for the days they were out of work during the firm’s suspension.

Uber representatives went to the LTFRB main office and paid the P190-million penalty for non-compliance to the board’s regulations.

The LTFRB insisted that Uber cannot lawfully operate until such time the board takes hold of the proof from the firm’s depository bank that it has paid its obligations to the drivers affected by the suspension.

Lizada said the assistance was based on Uber’s own manifestation that they would extend financial assistance to its drivers until its services are restored.

Uber was suspended on August 14 for allegedly defying a moratorium on accepting new drivers.

Earlier, the company offered to pay P10 million in exchange for the lifting of the suspension order.

Lizada said the P190 million fine is fair based on the remaining 19 days of the suspension order multiplied by Uber’s average daily income of P10 million.

Ride-hailing firms, which offer on-demand transport service using mobile phone applications, have been a popular alternative to taxis and other modes of public transport.