Online transport service company, Uber is yet again amongst the headlines, after coming head to head against law regulators, this time in the country of Philippines.
Authorities in Philippines ordered the American company to stop its operations in the country for a month. Uber’s service was stopped in the country following the order, however, the ban did not last for too long.
Uber began its operations just hours later after the American firm filed an appeal to the authorities to reconsider the ban on the company. Uber also released an official statement that it will continue operating in the company until the situation is resolved.
Philippines Land Transportation Franchising and Regulatory Board did not agree with Uber’s decision to carry out their operations, as it warned the company to not accept customers until the authorities have submitted their final decision.
Any Uber driver caught during this period accepting customers and giving rides will be facing a fine of more than $2,300 and will have their cars impounded for a period of three months, according the the law regulating agency.Uber’s process of hiring drivers have been under scrutiny in the Philippines
This arises as the latest problem for the American transportation network company, who has had a lot of problems with different law regulators in different countries around the world. The company has had been in other problems as well, following the resignation of their CEO and co-founder, Travis Kalanick this past June.
The suspension of Uber service in Philippines this week rose criticism from frustrated people on social media, who insisted that the service was better than the other transportation services available in Manila, the country’s decorated capital.
Uber also revealed in a statement that thousands of riders faced inconveniences to reach their destination, while other drivers were unable to give rides, and thus did not get the earnings that they wished to get by the end of the day.
On the other hand, Philippines’ transport agency insisted that the American company should provide financial aid to its drivers, so that they can earn if there is a suspension on Uber’s service. The agency also blamed the situation of Uber driver’s on Uber’s clever policies.
Uber invited trouble in the country of Philippines, after it continued to hire new drivers, even though the agency had suspended Uber’s process of hiring new drivers last summer, which would only be cared after the agency is made totally aware of the hiring process.
Earlier last month, Uber and domestic rival Grab were fined and ordered not to hire or active any new drivers. With Grab agreeing to the rules, Uber chose to ignore it, and were thus handed a suspension.
In its defense, the American firm revealed that it had continued to receive new applications of drivers, but did not process them any further.