LTFRB 'inclined' to mandate refund for TNVS drivers who covered fare discount

Metro Manila, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) is “inclined” to order transport network vehicle services (TNVS) companies to refund their drivers who have been shouldering the 20% discount for students, senior citizens, and persons with disabilities, or a portion of it.

“We are inclined to follow your recommendation that there should be a refund,” LTFRB chief Teofilo Guadiz told Senator Raffy Tulfo in a hearing on Tuesday, Jan. 14.

Tulfo, chairman of the Senate Committee on Public Services, noted that many TNVS drivers are being required to shoulder the 20% discount, prompting some to avoid accepting bookings from students, senior citizens, and PWDs.

Guadiz said an LTFRB hearing on January 8 showed that Joyride covers only 20% of the discount, leaving 80% to operators, while Angkas shoulders the entire discount.

Meanwhile, Grab covers 40% of the discount, with the remaining 60% left to TNVS operators, Guadiz said. But the National Public Transport Coalition (NPTC) noted that, starting March 1, 2024, Grab shifted the full discount burden to drivers and operators.

“Ibig sabihin, P410 sa isang libo ang mawawala. E apps lang naman sila, kami ang nagda-drive,” said NPTC President Ariel Lim.

[TRANSLATION: That means, for every one thousand pesos, P410 is being shaved off. They are just an app, while we are the ones who do manual labor - driving.]

In a prior hearing, Gregorio Tingson, Grab's head of public affairs, cited a memorandum circular stating the discount should be shouldered by the driver, adding that Grab will coordinate with the LTFRB on the issue.

Guadiz announced that the LTFRB will issue a memorandum circular in February, requiring transport network companies to fully shoulder the 20% discount.

“The shift now of the payment of the discount would be to the holder of the application like Grab, Angkas, and the rest,” Guadiz said.

“It was an oversight on our part, isa pong malaking paumanhin (our sincere apologies),” he added.

Tulfo interjected and suggested a refund.

“Kasi lumilitaw na itong mga TNC owner, yung mga apps, ay nanloloko sa mga rider nila (Because it appears that these TNC owners, the app operators, are deceiving their riders),” Tulfo said.

Guadiz said the LTFRB aims to issue a final decision on the matter within the month. ###