TNCs Urged to Absorb Cost of Surge Fare Cut

A digital advocacy group has called on Transport Network Companies (TNCs) to absorb the financial impact of a potential reduction in surge fares, urging them to lower commission rates to protect drivers from significant income loss.

Digital Pinoys national campaigner Ronald Gustilo emphasized that if the Land Transportation Franchising and Regulatory Board (LTFRB) implements the fare cut, TNCs should take responsibility by reducing their share of drivers’ earnings.

“The high commission rate being deducted by TNCs can be lessened so that drivers will not be heavily affected in case LTFRB will impose a cut on surge fares,” Gustilo said. “If they are truly looking out for the welfare of commuters and drivers, they should help out by having their commissions slashed.”

Currently, most TNCs charge a 20-21% commission on fares. Drivers have also criticized Grab Philippines for requiring them to shoulder the 20% senior citizen and persons with disability (PWD) discount, on top of the commission fee, which reduces their gross earnings by up to 41%, excluding vehicle maintenance and fuel costs.

LTFRB Action on Surge Fare Complaints

Gustilo welcomed LTFRB Chairman Teofilo Guadiz III’s announcement that the agency is investigating complaints against Grab’s surge fare policy. He urged the LTFRB to act swiftly, ensuring surge fares do not unduly burden passengers and drivers.

“While the good pronouncements by the LTFRB are a welcome development, we would like to see them actually acting on these complaints,” Gustilo said. “It is high time that LTFRB ensures that surge fare will not be used to victimize the victims into drying up their finances.”

Drivers’ Struggles

Drivers have long been vocal about the financial challenges they face under the current commission structure. With rising fuel costs, vehicle maintenance expenses, and mandatory discounts, many drivers report struggling to make ends meet.

Advocates argue that reducing commission rates would help offset the potential impact of a surge fare reduction, balancing the interests of commuters, drivers, and TNCs.

As the LTFRB deliberates on the surge fare issue, groups like Digital Pinoys are urging stronger regulation to ensure fairness for all stakeholders in the transport network vehicle service (TNVS) industry.