TNVS drivers to LTFRB: Order refund of fare discounts passed on to us

A group of ride-hailing app drivers has called on the Land Transportation Franchising and Regulatory Board (LTFRB) to defer the implementation of its newest policy mandating transport network companies (TNCs) and operators to equally share, and not pass on to their drivers, the 20-percent fare discounts for persons with disabilities (PWDs), senior citizens and students.

Laban TNVS president Jun de Leon said that LTFRB Memorandum Circular (MC) No. 2025-10, which is set to take effect on April 7, was “unfair and unacceptable” to drivers of transportation network vehicle service (TNVS) or ride-hailing apps.

In a Facebook livestream, De Leon said he filed a motion before the LTFRB on March 27, calling for the deferment or suspension of its memorandum.

According to him, the transport board should first address their group’s demand for Grab Philippines to refund the passenger fare discounts that it passed on to its driver-partners, an issue that was tackled during a Senate inquiry held in January.

“The immediate implementation of MC 2025-10, without awaiting the resolution of the pending complaint, may not only preempt adjudication of the issues raised but could also legitimize the practices that are currently under challenge for being unlawful and unauthorized,” De Leon said.

The LTFRB memorandum mandates TNCs and TNVS operators to equally shoulder (50-50) the 20-percent fare discounts granted by the law to PWDs, senior citizens and students.

The discounts should not be passed on to TNVS drivers, unless the operator of the TNVS unit is also its driver.

Clarification

The LTFRB said the memorandum was issued “to categorically set and avoid further confusion” as to who shall bear the 20-percent mandatory fare discounts.

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Recent hearings conducted by the Senate committee on public services called for the review of ride-hailing policies after it was revealed that TNVS drivers frequently avoid accepting bookings by PWDs, seniors and students so they would not have to shoulder the discounts.

The Senate inquiry also found that TNCs used varying formulas for discount-sharing leading to different implementations of the discount, which cause confusion.

Prior to the newest memorandum, the LTFRB had been shifting the responsibility for the discounts between TNCs and TNVS operators.

Under LTFRB MC 2015-016-A, all discounts mandated by law shall be shouldered fully by the TNCs. However, this was superseded by LTFRB MC 2019-036, which stated that the TNVS operator shall bear the 20-percent discount, being “the grantee certificate of public convenience, the common carrier and the provider of transportation services.”