Uber, together with Grab, appear to victims of their very own success

The Philippines has at this time (Monday, August 14) suspended Uber for a month, in a call that adopted a government crackdown on unregistered drivers.

The Land Transportation Franchising and Regulatory Board (LTFRB) has not given a purpose for the choice, which got here amid disputes with Uber and Grab which have prompted investigations by Congress.

The LTFRB issued an advisory saying its board had additionally “strongly recommended” that Uber lengthen monetary help to accredited operators whereas it’s underneath suspension. As of July, Uber had 30,000 energetic drivers within the Philippines.

The Metro Manila Development Authority, the national police’s Highway Patrol Group and the Land Transportation Office have been knowledgeable of the suspension.

Extending monetary help might be “an expression of good faith as their accredited peer-operators would not have suffered the current predicament were it not for the predatory actions of respondent Uber,” the LTFRB mentioned.

“We are studying the order at the moment. We will update our riders and drivers as soon as we can,” mentioned Uber Head of Communications Cat Avelino.

The Philippines was the primary Southeast Asian nation to manage app-based car-hailing operations after drawing up guidelines in 2015.

Last yr the LTFRB suspended the acceptance and processing of purposes for all ride-sharing providers, together with Uber and Grab, to research easy methods to regulate the trade.

But each Uber and Grab mentioned they continued to just accept new drivers amid robust demand for the service, leading to a surge within the variety of unregistered drivers.

Both Grab and Uber have gained large reputation within the Philippines, the place taxi drivers routinely demand extra fee for longer routes or visitors issues.

Source: philippineslifestyle