LTFRB allows accredited Uber partners to operate under Grab or UHop

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Metro Manila (CNN Philippines, August 17) — Commuters and drivers of Uber Systems Inc. got some relief after government regulators on Thursday allowed accredited Uber drivers to operate under two other transport network companies.

The Land Transportation Franchising and Regulatory Board (LTFRB) released a resolution saying Uber-accredited transport network vehicle services (TNVS) will now be allowed to operate under Grab and UHop during Uber's suspension period.

According to Board Resolution No. 19 of the LTFRB, qualified Uber units will be "accommodated by either of the two accredited Transport Network Companies (TNC), namely My Taxi.PH Inc. (Grab) and UHop, subject to the following conditions:"

proof of accreditation issued by Uber

proof of insurance coverage as TNVS

"On a daily basis, either Grab or UHop will email us the list of the names of the TNVS coming from Uber. On our end, we will double check it with the list given by Uber to us to ensure that only those accredited by Uber will be accommodated," said LTFRB spokesperson Attorney Aileen Lizada.

The LTFRB said the resolution recognized the need of the riding public which lost options for their commute when regulators suspended Uber on August 14 for violating a July 26 order to desist from accrediting more drivers.

"The decision of the board is based on the urgency of public service, particularly the riding public, for their convenience and benefit as well as the TNVS who were displaced because of Uber's irregular conduct."

Uber compensation to drivers is "fair": Lizada

Earlier, Uber offered to pay a fine of ₱10 million ($196,000) in its second bid to resolve its row with government regulators. Lizada said this was a fair amount.

She said, "They more or less earn ₱5-₱6 million a day...this is two days worth."

READ: Uber files new motion, manifestation; offers to pay fine instead of taking suspension

Attached to Uber's offer is supposed to be a list of all its accredited drivers, and how much assistance they will be receiving.

Uber said it is also offering financial assistance to its drivers who are affected by the suspension.

RELATED: Uber drivers report receiving e-mails promising compensation

Lizada said they could not dictate on the amount to be given to drivers, but "if they present a formula, we ask them how did they arrive at that formula and we can verify."

New ride-sharing app?

While the Uber issue is still being resolved, another ride hailing app – Arcade City – launched its service.

But the LTFRB says its operations are illegal and warns passengers against using it. The transport regulator ordered Arcade City to stop its operations because it has not registered with the LTFRB.

"Illegal, definitely illegal. I do not know if they are registered with SEC (Securities and Exchange Commission), we do not know if may business permit. Marami hong [There are a lot of] checks and balances that's why you need to be accredited, kasi it is through accreditation that we see everything," Lizada said.

Arcade City said the LTFRB doesn't fully understand how the app works.

It does not require payment from drivers or riders, it added.

The LTFRB has asked the information and communication technology department to disconnect Arcade City from the network so it cannot operate.

CNN Philippines' AC Nicholls, Pia Garcia, VJ Bacungan, and Chad de Guzman contributed to this story