LTFRB: 20% fare discount must be shouldered by operators, transport networks

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The Land Transportation Franchising and Regulatory Board says the 20% discounts should be shared equally between Transport Network Companies and Transport Network Vehicle Services

MANILA, Philippines – Operators and transport networks or ride-hailing firms — not drivers — should shoulder the mandated fare discounts granted to seniors, persons with disabilities (PWDs), and students.

The Land Transportation Franchising and Regulatory Board (LTFRB) said the 20% discounts should be shared equally between Transport Network Companies (TNC) and Transport Network Vehicle Services (TNVS).

For example, if a student were to book a vehicle using a ride-hailing app, the 20% discount mandated by law is shouldered by the app and the owner of the vehicle.

“The fare discounts mandated by law and other regulations shall not be passed on by the TNC and the TNVS operator to the TNVS-Driver unless the TNVS operator is also the Driver of the vehicle,” the LTFRB memorandum dated March 19 and made public on Wednesday, April 2.

This will be effective 15 days from its publication.

The memorandum comes months after the LTFRB found that TNCs have different formulas in applying the law-mandated discounts in terms of bearing the 20% off of fares.

For example, Grab drivers have been shouldering the 20% discount granted to qualified passengers. With the 20% to 30% commission Grab charges, drivers with the ride-hailing app end up taking home only 50% to 60% of what they earn.

LTFRB Chairperson Teofilo Guadiz is reminding operators and transport companies to follow the 50-50 policy in granting discounts, shielding drivers from shouldering it themselves unless the driver also happens to own the vehicle. – Rappler.com