Limit ride-hailing giants' share of drivers' earnings - transport groups

Source: Rappler

MANILA, Philippines - Several transportation groups urged the government to limit the commission rate that ride-hailing giants can charge its drivers and operators, who they say struggle to make ends meet.

Laban TNVS president Jun de Leon said that Grab charges its operators around 21% in commissions. Operators also have to shoulder the 20% discounts granted to senior citizens, students, and persons with disabilities starting March 1, 2024. That means in some instances, Grab drivers might be left with just 59% of what they earned from a ride - not enough for the gas and time spent on a trip.

"'Yung Grab 'no, napakalaki po na kompanya niyan, pero kawawa po 'yung mga sinasabing partner - pero hindi partner ang turing niya. Ginagawang gatasan ng Grab eh 'yung mga drivers natin," De Leon said on Wednesday, March 6, in a press conference that also included members of Manibela and Defend Jobs Philippines.

(Grab is such a big company, their so-called partners are pitiful - they don't treat them like partners. Grab treats their drivers as cash cows.)

In response, the groups want the Land Transportation Franchising and Regulatory Board (LTFRB) to start regulating how much transport network companies (TNCs) like Grab and JoyRide can ask from their drivers and operators. The groups propose setting a commission limit of 10% to 12% across all TNCs to protect the livelihood of those working for ride-hailing and delivery services.

De Leon, along with Manibela chairman Mar Valbuena, said that they first petitioned the LTFRB about the matter in December 2022. LTFRB Chairman Teofilo Guadiz III then promised to resolve the issue but the government agency has yet to take action.

There is no law or memorandum circular that limits the commission rates that a TNC can charge its drivers and operators.

Grab told Rappler that it holds consultations with its drivers and operators ahead of any changes to its commission rate, during which the ride-hailing giant takes note of their opinions to ensure that the platform still works to their interests.

Aside from setting limits on the commission rate, the transportation leaders also called on Grab to shoulder the 20% discount granted to students, senior citizens, and PWDs. At present, this is which is deducted from a driver's earnings.

Prior to July 2023, Grab used to shoulder this 20% discount. After July 2023, Grab only shouldered half of the discount, and starting March 2024, drivers were required to fully shoulder the discounts.

According to Grab, their decision to let drivers fully shoulder the 20% discount is based on an LTFRB memorandum circular from 2018. MC 2018-004 directs "all public utility operators and drivers to grant 20% fare discounts to persons with disability" and further states that "in the case of transportation network vehicle services and taxi service, the full 20% discount on the total fare shall be given to the PWD regardless of the number of his/her companions."

Grab initially shouldered the discounts to lessen the impact on drivers' earnings, but the decision to let drivers' shoulder the 20% discount was communicated to them since the second half of 2023.

Nevertheless, the Laban TNVS president argued that drivers cannot earn a living if they have to shoulder this discount on top of the hefty commissions that Grab charges.