Uber Faces Off With Philippine Regulator as It Defies Halt Order

(Bloomberg) -- Uber Technologies Inc. is defying a Philippine government order to suspend operations for a month, saying it will continue to provide ride-hailing services in the cities of Manila and Cebu pending the outcome of an appeal.

The world’s most valuable startup, no stranger to clashes with governments around the globe, froze operations from 6 a.m. local time Tuesday, leaving tens of thousands of would-be riders stranded. It resumed service after appealing the decision later in the day, despite the threat of fines and vehicle seizures.

“Uber’s operations will continue until the motion is resolved,” the U.S. company said in a post on its Facebook page.

The Land Transportation Franchising & Regulatory Board on Monday imposed a monthlong suspension on Uber’s ride-hailing services after it was found to have violated an order to cease accepting new driver applications. The agency’s suspension stands, ABS-CBN News cited board member Aileen Lizada as saying. Uber drivers who accept bookings could be apprehended and may face fines of as much as 120,000 pesos ($2,300) and have their vehicles impounded, she was cited as saying.

Uber’s accreditation is due to expire this month and is under review, Lizada told Bloomberg Television Philippines separately. The company could face a local lawsuit and its foreign executives may get deported, she added.

Senator Grace Poe, whose Transportation Committee is investigating the ride-hailing service, said she would meet with representatives from Uber and the transportation agency on Wednesday to try to resolve the issue. The regulator should have fined Uber instead of halting its operations because the public will suffer, she said in a statement.

The Philippines is cracking down on ride-hailing companies including Uber and Grab, to limit car usage and alleviate congestion in a capital clogged by 2.4 million vehicles. About 50,000 vehicles operated by Uber and Grab are plying the roads of metropolitan Manila and other cities without proper permits, according to the transportation agency.

--With assistance from Cecilia Yap and Clarissa Batino

To contact the reporter on this story: Norman P. Aquino in Manila at naquino1@bloomberg.net.

To contact the editors responsible for this story: Robert Fenner at rfenner@bloomberg.net, Edwin Chan