Lawmaker urges TNVS firms to lower commission rates

By Rjay Zuriaga Castor

Iloilo City Lone District Rep. Julienne “Jam Jam” Baronda has urged transport network vehicle service companies to temporarily reduce their commission rates, citing the growing financial strain on drivers amid rising fuel prices.

In a letter to Grab Philippines, Maxim, Angkas, and JoyRide PH, Baronda appealed for what she described as “humanitarian consideration” during the ongoing global oil crisis.

Baronda said TNVS firms should take immediate action by lowering their commission shares, even temporarily, to help drivers retain a larger portion of each trip’s earnings.

“In the spirit of corporate social responsibility and humanitarian concern, [I am] formally appealing to your management to consider a temporary reduction in your commission rates,” she said.

She acknowledged the companies’ decision to keep fare rates stable despite economic pressures, saying the move has helped protect commuters.

However, she said the burden has shifted heavily to drivers, many of whom now struggle to meet basic needs due to shrinking take-home pay.

“While this stability protects our commuters, thousands of TNVS drivers across the country are faced with eroded daily earnings, leaving many of them struggling to provide even the most basic necessities for their families,” Baronda said.

She added that while government aid and long-term subsidy programs may take time to take effect, the immediate situation requires a faster, private-sector-led response.

“The actions you have taken to help ease the impact on your drivers deserve our gratitude, but these are not enough,” she said.

Baronda said temporarily reducing commission rates would serve as a “vital lifeline” for drivers coping with high fuel prices while also helping sustain transport services for the public.

She added that cutting commissions would show that companies treat drivers as partners rather than mere platform users, especially during a period of economic uncertainty.

“Difficult times require extraordinary empathy. I believe that by sharing the burden of this global crisis, we can ensure the continued mobility of our citizens while protecting the dignity and livelihood of the hardworking men and women behind the wheel,” she said.

TNVS companies in the Philippines typically charge drivers commission rates ranging from 20 to 25 percent per trip.

The Land Transportation Franchising and Regulatory Board regulates TNVS fare structures, but commission rates charged by platform operators to their drivers are largely set by the companies themselves.