Road to reform

February 13, 2025 | 12:00am

The issue of discounts for vulnerable groups, including seniors and persons with disabilities (PWDs), has sparked widespread discussion across social media platforms. While much has been said, one thing is clear: this ongoing debate highlights the urgent need for clear and effective legislation to ensure these discounts are properly implemented and accessible to those who need them most.

Discounts for vulnerable groups are mandated by law and should be provided rightfully so, but there still are critical gray areas that needed to be addressed to ensure these benefits are fully realized without disproportionately hurting businesses. It is important that there is a balance that maximizes support for our vulnerable sectors, but at the same time, safeguards the sustainability of the businesses providing these discounts.

A recent revelation has made headlines, shedding light on a troubling issue within the implementation of transport network vehicle services (TNVS) discounts. Under the law, senior citizens, PWDs, and students are entitled to a 20 percent discount for transportation. However, it has come to light that TNVS drivers are being unfairly burdened with covering a significant portion of these discounts, putting their livelihoods at risk.

In traditional public transportation settings such as buses and trains, the companies or public utility vehicle operators fully absorb the cost of mandated discounts. However, the situation is very different for ride-hailing platforms, where companies get a commission from varying fares charged to passengers.

For TNVS drivers, the financial burden of these discounts is far heavier. Unlike the operators who are large transport companies, their drivers only earn on thin margins- they simply cannot afford to shoulder the cost. This is probably the reason why many drivers hesitate or even refuse to accommodate senior citizens and persons with disabilities (PWDs). Unfortunately, this fosters an environment of discrimination, wherein vulnerable passengers are underserved and all the while, drivers are forced into an unsustainable position.

In essence, the current system favors the transport network companies (TNCs) and greatly disadvantages drivers.

It is easy to blame TNCs for putting the burden of discounts to their drivers instead of absorbing the cost themselves. However, the issue runs deeper than just a lack of accountability.

The broader problem rests on the lack of a clear regulatory framework that details the process of implementation of these discounts – from who should bear the cost, down to the validation of IDs.

As the platform service provider, TNCs bear a greater responsibility for these mandated discounts. Various corrective measures can be done, such as fully passing the discount to the TNCs to ensure that drivers receive their full fare or creating a subsidy system for riders for the discount. The bottom line here is that the drivers- who are in a largely financially disadvantaged position- should not be forced to shoulder the impact of these discounts alone.

It is in this light that the government should immediately step in to resolve this and define clear and fair regulations. Doing so will not only guarantee that those entitled to discounts receive them but also safeguard the industry from fraud and ensure the long-term sustainability of ride-hailing services.

Essential to this is addressing the issue of access. A validating mechanism should be put in place to ensure that actual senior citizens, PWDs, and students get access to these discounts and those who are abusing the system of these discounts are penalized.

Likewise, the government must address the gray areas in the current legislation and establish clear, concrete, and detailed guidelines to hold businesses accountable. At the same time, stricter regulatory measures must be in place to protect businesses from fraud. This issue not only negatively impacts companies that provide discounts but also harms the individuals these policies aim to support- PWDs, senior citizens, and students.

Certain sectors have called for transport network companies to retroactively reimburse drivers who have shouldered these discounts. However, this needs further discussion and consideration because existing laws tie the discount obligation to TNVS driver-operators rather than TNCs. Compelling these companies to shoulder or reimburse the discount value would necessitate legislative amendments to existing laws.

At its core, this is an issue of fairness and justice.

If we truly want to support vulnerable sectors, we must ensure that the system designed to protect them does not inadvertently harm others. Drivers deserve to earn a decent living and passengers deserve to receive the discounts they are entitled to under the law. I do not think it is fair that we have to choose one over the other.

It is now up to the government to create an enabling regulatory framework- one that balances social responsibility with economic sustainability through well-crafted, detailed, and forward-thinking policies.