Grab told to explain why drivers shoulder 20-percent fare cut
Sen. Raffy T. Tulfo —Senate Public Relations and Information Bureau
MANILA, Philippines — Sen. Raffy Tulfo on Tuesday urged ride-hailing company Grab to review its policy requiring partner drivers to shoulder the 20 percent fare discounts granted to students, senior citizens, and Persons with Disabilities (PWDs) on top of the 20 percent to 30 percent platform fee per booking.
“With this setup, drivers can only take home 50-60 percent of their earning[s] per booking, which is unfair for them,” said Tulfo, chair of the Senate committee on public services which is hearing complaints against transportation network vehicle services (TNVS).
READ: Grab PH to revamp cancellation policies, user experience by Q1 of 2025
The senator said this policy could be one of the reasons why most drivers refuse to accept the bookings of passengers with special concerns.
Saturnino Mopas, chair of TNVS Community Philippines, confirmed that drivers have been absorbing the 20 percent discount for the past six months.
Article continues after this advertisementLand Transportation Franchising and Regulatory Board (LTFRB) Chair Teofilo Guadiz III said that this was a violation of its franchise agreement with Grab. He added that based on their existing policy, Grab should be the one shouldering the said discount and not their drivers.
Article continues after this advertisementJeepneys, too
Guadiz added that they would issue a show-cause order to Grab as he further warned that this violation could lead to the suspension of its franchise.
Tulfo also asked the LTFRB to include in its review the possibility of having jeepney operators cover the same 20 percent discount for individuals with special needs instead of jeepney drivers.
At the same time, he expressed concern about the difficulty of booking Grab rides during rush hour or in case of bad weather.
Lawyer Gregorio Tingson, Grab’s head of public affairs, admitted that they do not have enough drivers to serve the commuting public when the demand is high.
“Many of our drivers do not go out on the road while others wait for traffic volume to become lighter, so they need to be given an incentive to return to the streets, especially when the riding public needs them,” Tingson said.
Earlier, Guadiz said the LTFRB was considering reducing surge fees for TNVS by as much as 50 percent.
He noted in a radio interview that they had been getting complaints about all-day and exorbitant surge charges, particularly that of Grab.
According to Guadiz, the LTFRB already summoned Grab to explain how it came up with its surge rates, which customers have described as excessively high. A surge fee is added to the base fare during peak hours or when demand is high but only a few drivers are available to encourage more of them to get out on the road.
