Court suspends Uber, GrabCar operations

MANILA, Philippines (UPDATED 5:08 p.m.) — The Quezon City Regional Trial Court on Friday suspended the operations of app-based transport services Uber and GrabCar for 20 days.

The court issued a temporary restraining order (TRO) against the Department of Transportation and Communication (DOTC) and Land Transportation Franchising and Regulatory Board (LTFRB) to stop operations of Uber, GrabCar and similar transport services.

Petitioner Angat Tsuper Samahan ng mga Tsuper at Operator ng Pilipinas Genuine Organization Transport Coalition, represented by Pascual Magno, earlier requested for a TRO against the operation of the private transport services.

"The petitioner has established that there is a material and substantial invasion of the rights of the officers and members of the Association as holders of Certificates of Public Convenience necessary for the operation of their utility vehicles," the resolution read.

The court cited that the petitioner has shown a right to be protected as recipients of franchises, adding that the rights of public utility vehicles have been affected by the operations of Uber and GrabCar.

"Their claim that they suffer less or low incomes and earnings is found to be persuasive due to the sudden and uncontrolled increase in the number of (Transport Network Vehicle Services) utility vehicles running in the streets of Metro Manila," it stated.

The TRO includes the stopping of accepting, processing and approving of applications of motor vehicles as public utility vehicles accredited and belonging to TNVS.

The court order temporarily cancels DOTC Department order 2012-015 and LTFRB's memorandum circular 2015-015 to 018, which cover the accreditation of transportation network companies and issuance of franchises to TNVS.

"They were issued to provide our commuters safe, efficient and convenient means of transportation using online enabled mobile applications to book their rides," the LTFRB said in a statement.

The LTFRB and DOTC will confer with the Office of the Solicitor General to discuss the best legal remedy to ensure the continuity of TNVS services especially during the Christmas season, the LTFRB said.

In a statement, Uber said it is studying the implications of the court order.

"Uber was not a party to the proceedings that resulted in the court's decision and plans to coordinate closely with the DOTC and LTFRB," Uber said in a statement.

The court has scheduled the hearing of the petitioner's application for preliminary injunction on December 8.

Leaders of the House of Representatives earlier asked the LTFRB to suspend the grant of franchise to transportation network companies to protect passengers from fare manipulation.

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