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Why Uber in Philippines Suspended Operations

 

Uber has always been known as a force to be reckoned with. The company is popular for employing a dominating approach as it enters a new city. This stance however, didn’t seem to work for Uber in Philippines. In the past, Uber had taken on state governments in big cities around the world such as Texas, Florida, New York, New Jersey, Austin and Pennsylvania over a number of issues. The company has come under fire for many reasons including fingerprinting drivers, driver classification and even friction with local cabbies. Uber in Philippines

 

Uber in Philippines suspends operations

 

Uber faced similar backlash in Philippines when it came to registering drivers. The Land Transportation Franchising and Regulatory Board (LTFRB) in the country mandated Uber and other rideshare companies to ensure their drivers and partners must apply for permits before registering as drivers. The permits included:

  • PA (Provisional Authority) – is a temporary permit to operate as a TNVS, valid for 45 days and renewable for up to 135 days
  • CPC (Certificate of Public Convenience) – is an official permit to operate as a TNVS, valid for 1 year and renewable for up to 7 years.

Due to the large number of drivers applying for permits, the LTFRB had to deal with backlogs and asked rideshare companies to stop registering drivers so that the backlogs could be cleared. It was reported that the companies refused to stop registering drivers and were fined about $100,000 each. After it appeared that Uber still didn’t comply with stipulated regulations, the company was banned for a month and asked to “cease and desist” operations.

Uber in Philippines went on to suspend its service after the ban, citing the company’s displeasure with the Regulatory Board’s stance.

 

In March 2018, Uber announced that it will be exiting Southeast Asia. The rideshare giant sold its stake in the region to Singapore based, Grab signaling the end of Uber in Southeast Asia. It seemed Uber’s decision to suspend its services in the Philippines is congruent with the company’s sales of its stake in South-East Asia.

 

What we think

 

If you stand to gain more by selling off struggling operations and making strong partnerships, then by all means, do so. Grab has a stronger hold in Southeast Asia where its food delivery, carpooling, cashless payments and bike share services are available in 191 cities. UberEATS and Uber’s ridehailing services will now be available on Grab’s app.

 

 

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