One Month Suspension of Uber Operations

A Reaction Paper

Submitted to:

Dr. Ruby Catherine Baez

In partial fulfillment

of the requirements in

Technical Writing

Submitted by:

Flordeliza T. Belleza

August 22, 2017

 To the passengers, Uber is essentially synonymous with taxis, and to the
drivers, its basically a referral service. The Android, iOS and Windows Phone
app connects riders with drivers using their phone's GPS capabilities, letting
both parties know one another's location and removing the question of when the
ride will actually arrive. Uber drivers do not possess special licenses; they use
their personal vehicles to offer discounted fare rides. Ride-hailing and payment
are all handled through a smartphone app. Uber is hugely popular in the
Philippines and is regarded by its users as more reliable and competitive than
the country's outdated public transport services.

But on Monday, August 14, the Land Transportation Franchising and

Regulatory Board (LTFRB) ordered the suspension of Uber for a month. The order
came after Uber violated the July 26 mandate of LTFRB, directing all transport
network companies (TNCs) to stop accepting drivers into their system to avoid
raising false expectations that these drivers can engage in the public
transportation service without the necessary permits from the board. The order
will take effect on August 15, halting the operation of 66,000 Uber drivers who
ply the roads for a living.

The LTFRB noted that Uber had accepted and activated at least 3 vehicles
on July 27, one of which was a motor vehicle registered in the name of the board.
While it acknowledged the concerns of the riding public, the board said it was
confronted with the issue of striking a balance between innovation and laws
governing public transport services. And the LTFRB said that Uber's actions were
"not about pushing innovation in the context of fair regulation, but it is about
unduly challenging the limit of fair regulation to continue to engage in business
in this country, thereby compromising sound business practices." Aside from
imposing the one-month suspension, the LTFRB warned that Uber will be held
responsible for all accredited vehicles found accepting passengers during the
suspension period.
 Uber on the other hand defended itself and said that it was accepting new
applications for vehicles but was not processing them pending its discussions
with regulators. It also urged the government to simplify the accreditation
process, with a representative telling a congressional inquiry: "We cannot impose
1900s regulations on today's technological innovations". Then filed a motion of
reconsideration for the said suspension but it was soon denied by the LTFRB.

This issue prompted an online backlash in social media, with commuters

venting their fury at having a trusted and reliable form of transport taken away
and that Uber drivers started to panic since what if the suspension continues
and become permanent. They are worried on where they can get their income in
order to provide the needs of their families.

In my opinion, the LTFRB just did their job and there is nothing wrong
with suspending the said company from operations if thats the boards decision
since Uber became irresponsible and it violated the rules and regulations that
had been set, like its going above the law. But there is a swifter resolution
about this issue that they could just have imposed. Instead of suspending it for
a month, why not change the penalty to a fine or they can lessen the suspension
period for about two weeks. Because LTFRB need to bear in mind that the public
is the one that is most affected in the said suspension. The public is really
against it since for them, Uber is more convenient, safe and better than other
public transportations like taxi- taxi drivers are very picky about the customer
in terms of where the destination is and the smell of the taxi makes the
passengers uncomfortable. Passengers are really defending Uber since it offers
them great services that they really need. One Uber driver said they are getting
their moneys worth and peace of mind brought by good service. No one will ask
for additional fare. The car smells nice, it's clean, and the air conditioner works.
According to the public, the decision will cause unnecessary "hassle for
commuters."
 For me, its a generous move that Uber admitted their mistake and that
they will comply with the requirements needed. Also, despite of its suspension,
Uber released a statement that they would provide compensation to their drivers
based on their income for the last 28 days. This is a proof of their commitment
and that they are really thankful for the drivers support on the company. I wish
that this will serve as a lesson to them so that they will be responsible enough
and they must learn that abiding the law is the greatest weapon for a business
to prosper.

Lastly, it cannot be denied that app-enabled transportation services like

Uber serve commuter needs; they're efficient and can be tracked. In the
Philippines, they fill a void left by a perennially weak mass transport system.
This issue is also a proof of the problem that we lack of safe, reliable and
convenient transportation options for our people. LTFRB should start to open its
doors to innovation in terms of the other public transportations. LTFRB should
help drivers and companies upgrade skills and use technology to improve
services, strengthen safety for commuters, and connect with each other to
discuss welfare issues so that in case that this situation will happen again, the
public can consider taking other public vehicles because they are secured that
whatever public transportation they take, they will always be safe, comfortable
and it will always be convenient for them.

All of us must understand that there will always be a punishment for

actions violating the law- we cant just leave it behind. And if we really want to
root for a strong regulatory state, we should accept the decision the board has.
But that decision should at least have a consideration for the publics needs. The
punishment must also be well imposed and will always be firm. At the end of the
day, this kind of issue is an eye opener that we need to make an action to the
problems that our society has and it will also serve as a basis on how we can
properly handle them.