LTFRB February memo to order ride-hailing firms, operators to bear discount

The Land Transportation Franchising and Regulatory Board (LTFRB) is preparing a memorandum circular, set for release in February, that mandates drivers of ride-hailing services should no longer bear the 20% discount for persons with disabilities (PWDs), senior citizens, and students.

LTFRB Chairman Teofilo Guadiz III revealed this during a Senate hearing, following a consultation held on January 8 with 19 stakeholders, including Transportation Network Companies (TNCs) such as Grab, Move It, Angkas, and Joyride.

"We're now drafting a memorandum circular which will be implemented this February wherein all of the discounts will now be shouldered by the... operator and by the owner of the app," Guadiz told the Senate Public Services Committee.

"In this case, for example, kung si Grab... and 'yung may-ari ng sasakyan po. But definitely the driver should not be included in the equation sir, dapat walang sino-shoulder 'yung driver," he added.

Currently, Grab absorbs 40% of the discount while the operator shoulders 60%. For Joyride, the operator covers 80%, and the company takes on 20%. Meanwhile, Angkas covers the full 20% discount.

The memorandum follows concerns raised in the Senate about drivers being forced to absorb the discount, with many citing financial strain.

Saturnino Mopas, chairman and spokesperson of the Transportation Network Vehicle Service (TNVS) Community Philippines, testified that drivers have been shouldering the discounts for several months. — DVM, GMA Integrated News