The ride-hailing company allegedly disregarded an earlier order from the government to stop recruiting new drivers

Ride-hailing giant Uber said that it has temporarily suspended services in the Philippines starting from 7.30PM local time on Tuesday, according to several media reports.

This is in compliance to an order from the country’s Land Transportation Franchising and Regulatory Board (LTFRB) to suspend operations of ride-hailing companies for a month, after Uber allegedly disregarded an earlier government order to stop recruiting new drivers.

The instruction was given in July, so that the companies would get time to catch up on a backlog of drivers’ ride-hailing permits applications.

All these companies were reportedly fined “close to US$100,000” for allowing unregistered drivers to work. Uber had filed an appeal and continued its services until it decided to go off the roads today.

Also Read: What is Uber up to in Asia?

“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,” Uber stated on its social media channel.

Meanwhile, TechCrunch in 2016 reported the Philippines and Singapore as the two markets in the region where Uber has reached profitability. Grab was also reported to be doing well in the Philippines.

Grab also confirmed that it has adjusted its prices to manage an expected surge of demands in the market.

Netizens on Uber Philippines’ Twitter handle

Following the announcement, netizens in the Philippines have shown their support to the company and called upon the government to solve land transportation issues. Several netizens also questioned the government’s strict law enforcement towards Uber that does not seem to apply to other forms of public transportation, such as taxis, jeepnies, or buses.

Update: Uber is offering financial compensation to partner-drivers

According to reports on social media groups composed of ride-sharing drivers and riders, Uber has offered to compensate its partner-drivers for their loss of income during the suspension period. “To show our commitment, we are providing financial assistance payment … while we address this issue in the following days,” the email reads in Filipino. The daily amount depends on the driver’s average earnings for the preceding 28 days.

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