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posted by martyb on Tuesday August 15 2017, @08:49PM   Printer-friendly
from the uber-smackdown dept.

The Philippine Daily Inquirer reports that the Land Transportation and Franchising Regulatory Board (LTFRB) of the Philippines has ordered a one-month suspension of Uber's operations in the country.

The Land Transportation Franchising and Regulatory Board (LTFRB) has suspended for a month the operations of transport network company (TNC) Uber after it defied its July 26 order not to accept and activate new drivers into its platform.

In response, Uber issued a short statement, saying: "Uber received an order around 6 p.m. tonight (August 14) to completely stop operations. We are studying the order at the moment. We will update our riders and drivers as soon as we can."

In its cease-and-desist order that was released and took effect on Monday night, the LTFRB said that Uber was "irresponsible" when it continued to accept and activate new drivers into its platform.

[...] Recognizing that their order meant that thousands of Uber's drivers would lose income for a month, the LTFRB recommended that Uber extend financial assistance to its affected drivers as a "form of good faith."

"[T]heir accredited peer-operators would not have suffered the current predicament were it not for the predatory actions of [Uber]," it said.

On July 26, the LTFRB ordered TNCs Grab and Uber to stop their acceptance and accreditation of new drivers as the agency ironed out issues concerning the ride-sharing industry.

However, the LTFRB found out that Uber defied its order, with the TNC even releasing a statement that partly read that "applications are being accepted but not processed" by them. On top of this, the LTFRB was also able to activate three of its cars into Uber's platform.

The company later issued a statement that it was complying with the order. Earlier today (August 15) they filed a motion for reconsideration which the LTFRB has denied.


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  • (Score: 2) by nobu_the_bard on Tuesday August 15 2017, @08:52PM (1 child)

    by nobu_the_bard (6373) on Tuesday August 15 2017, @08:52PM (#554425)

    They should be lucky they didn't "die in a firefight" with police in the early morning. Need to always look at the bright side!

    • (Score: 3, Funny) by bob_super on Tuesday August 15 2017, @09:50PM

      by bob_super (1357) on Tuesday August 15 2017, @09:50PM (#554462)

      Let's start a rumor that Uber is used by drug traffickers to carry their products discreetly.
      Should do the trick pretty quickly.

  • (Score: 2) by takyon on Tuesday August 15 2017, @10:01PM (5 children)

    by takyon (881) <takyonNO@SPAMsoylentnews.org> on Tuesday August 15 2017, @10:01PM (#554466) Journal

    Just subbed another 2 Uber stories.

    --
    [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
  • (Score: 0) by Anonymous Coward on Wednesday August 16 2017, @02:54AM (4 children)

    by Anonymous Coward on Wednesday August 16 2017, @02:54AM (#554536)

    The Philippines, like many developing nations, has an incredibly corrupt transportation system. Taxi scams are standard. Ooo? Meter, no no - meter broke. Oooo we used AC? Big extra fee. Ooo two people? Big extra fee. This isn't just a heh heh, come on - gimme a bit more. Drivers will use intimidation and other tactics and can become physical as well. And that's just on the consumer side. The operators are very mafia like in their operation not only against consumers but other drivers. They have a gang-like claiming of territory and actively work to ensure that any competition has... 'problems.' Uber is of course too large for this sort of petty intimidation. So what precipitated this event? Here [gmanetwork.com] you go:

    Transport group Drivers Unite for Mass Progress and Equal Rights (DUMPER) stormed to the Land Transportation Franchising and Regulatory Board (LTFRB) on Monday to protest the operations of Transport Network Vehicle Service (TNVS) in the country. According to DUMPER Vice President Gerry Donesa, they are protesting the operations of both Grab and Uber in the Philippines as they are causing the decline in the profit of regular taxi drivers in the country., a report on GMA's "24 Oras" said.

    Uber offers reasonable fairs for consumers, and allows workers to drive with a relative degree of anonymity from the taxi mafia. Oh the indignity! But the problem is that they still have a single point of failure - governments which can be bought and otherwise influenced. And there's really no reason for this to be the case. Uber's entire service could be completely decentralized resulting in an even more valuable system for consumer and driver alike as there'd be no middleman taking a cut.

    Anyhow, just a bit of perspective. I think many Soylentals don't really realize how much Uber has changed the developing world. It has, with no hyperbole, been a revolutionary change. Seeing these governments trying to stamp this out is a reminder of why these places remain stuck in a perpetual state of backwardness (as nations - not just this specific industry), and is simply sad. Things like this might also help give some contrast to how individuals like Duterte, president of the Philippines who is engaging in a very violent purging of crime/corruption, can have reached approval ratings upwards of 90% even when his actions seem very barbaric from our very privileged view of the world.

    • (Score: 2) by n1 on Wednesday August 16 2017, @03:27AM

      by n1 (993) on Wednesday August 16 2017, @03:27AM (#554541) Journal

      I used Uber for the first time recently, it was a good experience and certainly better than the standard taxi service in that particular country. There are problems with the business itself, Uber does appear to be as corrupt and immoral as the taxi mafia rackets, but it's just remotely corrupt rather than locally.

      As someone that has spent a lot of time in the developing world, where the corruption is overt... You can get very high approval ratings if the population perceive the corruption to be working in their favor. It's still corruption, but it's the kind of corruption that means you pay a small bribe instead of a large fine, you can talk to the right people, drop the right names, and get some permits or licenses processed quicker or instantly without scrutiny. You can open a business and not have to pay taxes and health inspections at your restaurant because you always give the cops and local government a free meal. This of course has a negative impact on the government revenues, since they end up with a tiny fraction of the potential income from fines, taxes and fees. Which in turn increases those fees and generally puts more pressure on tourists and foreign businesses working to establish locally.

      In the 'first world' corruption is still everywhere, but there's just a higher barrier to entry, usually starting in the tens of thousands of dollars. You can rarely pay a $10 bribe instead of a $50 fine.

    • (Score: 2, Informative) by Anonymous Coward on Wednesday August 16 2017, @03:58AM (2 children)

      by Anonymous Coward on Wednesday August 16 2017, @03:58AM (#554551)

      As someone who has lived in the Philippines all his life, I can tell you that the taxi scams you describe aren't common, at least not in Metro Manila. In 41 years of life here and riding taxis almost daily I have never experienced any taxi drivers extorting extra fees for things like use of air conditioning or for extra passengers, like the Thénardiers of Les Misérables cheating the customers of their inn. The only really common taxi scams are drivers taking out contracts agreeing to a fixed fee regardless of what the meter says, and drivers refusing to carry passengers going to obscure or distant destinations they feel are not profitable. This is irritating enough as it is, and is one reason why Transport Network Companies like Grab and Uber are becoming very popular. The other being that there simply aren't enough taxis to service the city's transportation needs.

      A fully decentralised model though, has major drawbacks. With complete decentralisation however, accountability completely flies out the window. All of the notional scams you have described for the traditional taxi system and many, many more would become rife in a completely decentralised transport network service. There has to be some sort of authority that is able to impose things like fares and add a layer of accountability. I don't want to roll the dice that this driver I'm about to hail is going to rob me at knifepoint after taking me to a quiet field somewhere. A traditional taxi service and these centralised transport networks like Grab and Uber at least have that going for them. Don't tell me that ratings will help put a stop to this. It only takes a driver doing the equivalent of shipping a bobcat in one out of thirty packages [xkcd.com] to game those.

      • (Score: 1, Informative) by Anonymous Coward on Wednesday August 16 2017, @05:58AM (1 child)

        by Anonymous Coward on Wednesday August 16 2017, @05:58AM (#554579)

        You're being disingenuous there. I obviously don't have any way of judging your personal experience, but I do know that if you've lived in Metro Manila for 41 years you are fully aware of what I'm speaking of, and having never experienced it is going to require a knowledge of the typical issues, tells, and at least a bit of good luck. In any case, for anybody that would like see a sampling here you go: https://www.youtube.com/results?search_query=philippines+taxi [youtube.com]. You needn't specify robbery, abuse or anything of the sort. It's so systemic that simply searching for philippines taxi is synonomous with abuse and scams. And it is not only foreigners, though it's not as if ripping off and scamming foreigners ought be acceptable either. Or search google for "philippines taxi robbery". What you get in most countries is taxi drivers being robbed. In the Philippines it's the exact opposite.

        Your example of gaming rating systems does not seem likely. Ripping off 3% of your customers, means you gain lose 97% of your potential gains from such behavior. Another characteristic that is a stereotype, but one that is reliable, is that these sort of scammers and thugs are not exactly go getters. They will sit around all day doing nothing waiting for a single soft target when they could have made more money driving 10 people for legitimate fares in less time. They're not going to drive 30 people to 5 star competence so they can game their numbers and screw every 31st customer. The biggest benefit for ride sharing services is that there is also always a record of exactly who is driving and who is picked up. Such public knowledge protection mechanisms could be made even stronger in a decentralized system. For instance the way a ride could be 'started' would be mutual biometric exchange. The driver and passenger snap a quick pic of each other, after a quick face matching (against unchangeable photos) the ride is 'validated.'

        • (Score: 0) by Anonymous Coward on Wednesday August 16 2017, @09:18AM

          by Anonymous Coward on Wednesday August 16 2017, @09:18AM (#554625)
          Sure, it happens. It's reported. But the fact that it's never happened even once to me in the perhaps thousands of times I've ridden taxis in Metro Manila my whole life, nor has it ever happened to anyone that I personally know, probably means that it's not exactly systemic. Obviously if something makes the news like that then it is by definition not a common thing. If someone is being disingenuous here I don't think it's me. As I said the only kinds of abusive behaviours that I have personally seen with taxi drivers here is those bastards taking advantage of desperate commuters by forcing them to agree to fees, either flat rates or extra payment over and above what the meter says, and outright refusal to take one to certain areas. In the former case you always have the choice not to take the deal, and try to report the abusive driver to the LTFRB. The biggest thing that Grab and Uber have done here in Metro Manila is to help alleviate the extreme shortage of such conveyances that cause exactly the former behaviour.
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