LTFRB urged to regulate commissions of a ride-hailing app
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MANILA, Philippines — Delivery riders and drivers of ride-hailing apps on Tuesday urged the Land Transportation Franchising and Regulatory Board (LTFRB) to regulate the commission increases of a transport network vehicle service (TNVS) company, questioning its timing in view of rising fuel prices.
In a press conference on Tuesday, groups representing TNVS workers expressed opposition to the 2-percent increase in the commission rate of Grab Philippines, which will take effect on Dec. 1.
Grab currently takes a maximum commission of 20 percent for each delivery or passenger booking.
Laban TNVS president Jun De Leon said they were hoping that the company could defer the commission hike because drivers and delivery riders, who are considered independent contractors of Grab, were still reeling from the impact of the pandemic and the frequent oil price adjustments.
“As prices of basic commodities and services shoot up, any added centavo to the fuel price and the commission of transport network companies will only mean a deduction to the already low income we take home for our families,” De Leon said.
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Don Pangan, secretary general of the Kapatiran sa Dalawang Gulong (Kagulong), a group comprised mainly of delivery riders from Grab, Lalamove, and Foodpanda, urged Grab to consider their driver-partners’ rights and welfare by providing them with better working conditions.
Article continues after this advertisementPangan said many of their members had been forced to work more than 12 hours a day to keep up with the rising prices of gasoline and basic commodities.
Delivery riders in Metro Manila, he said, are earning an average take-home pay of only P800 for a 12-hour workday.
“Before the pandemic, riders were spending P200 a day for gasoline, now it’s P300 a day. Add to that their expenses for maintenance. Based on our computation, only P428 is usually left for them—already below the minimum wage of P570,” said Pangan.
His group also joined protests in Cebu City last week against Grab’s allegedly unfair treatment of its delivery partners.
In a statement issued last week, Grab pointed out that the protesters were “in fact not Grab delivery partners” and that they just wanted to “sow discord and discontent.”
Pangan denied this on Tuesday, further calling out the company for being “notorious in banning [from the platform] those who air their grievances.”
Laban TNVS said Grab riders and drivers would hold a nationwide protest against the oil price hikes and the implementation of Grab’s commission rate increase in the coming weeks.
On Nov. 10, more than 50 food and package delivery drivers for Grab staged a protest at the Fuente Osmeña Circle in Cebu City over new company rules that negatively affect their earnings.
The drivers, who belong to the United Delivery Riders of Cebu group, accused Grab Philippines of “unfair labor practices.”
The drivers opposed several new company policies, such as cuts on the earnings they made through deliveries and on their incentives under the program called “Gems.”
Grab, in response, assured the drivers that the company was doing its best to ensure the welfare of their drivers and riders.
While the company understands that certain changes may cause unease among their drivers and riders, Grab said the majority had agreed to the adjustments that were recently implemented.
Layoffs averted
“They (protesters) do not reflect the census of the entire (Grab driver) community,” Grab said.
The Singapore-based technology company said it had modified several policies affecting drivers, riders, delivery partners and consumers to “cope with recent challenges” without resorting to drastic measures such as layoffs.
“We need to achieve balance in handling everything,” they added.
Grab also denied claims that its recent decisions were made without consultations with the affected stakeholders.
