The Land Transportation Franchising and Regulatory Board (LTFRB) is poised to issue a memorandum circular mandating all transportation network companies (TNCs) to shoulder the 20-percent discount for persons with disability (PWDs), senior citizens, and students. INQUIRER FILES
MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) is poised to issue a memorandum circular mandating all transportation network companies (TNCs) and operators to shoulder the 20-percent fare discount for persons with disability (PWDs), senior citizens, and students.
LTFRB chair Teofilo Guadiz III disclosed this information during Tuesday’s hearing of the Senate committee on public services, following queries from panel chair Sen. Raffy Tulfo amid reports that TNC drivers currently assume the 20-percent discount.
Article continues after this advertisement“Based on your studies, how about we ask the companies to fully shoulder these discounts?” Tulfo asked in Filipino, to which Guadiz answered in the affirmative.
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“In this case, for example, Grab, TNC Grab, or the owner of the vehicle should shoulder the discount, but definitely the driver should not be included in the equation. The driver should not shoulder anything,” he added.
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Article continues after this advertisementDuring the hearing, Guadiz also cited that of the 20-percent discount for seniors, PWDs, and students, Grab Philippines presently shoulders 40 percent while Transport Network Vehicle Services (TNVS) operators assume the remaining 60 percent.
Article continues after this advertisementJoyride Philippines, on the other hand, shoulders 80 percent of the 20-percent discount while Angkas assumes the entire 20 percent.
TNVS group head Saturnino Ninoy Mopas revealed before the Senate panel in December 2024 that drivers have begun shouldering the discounts.
Article continues after this advertisement“For the past years, TNC has shouldered the 20 percent [discount] for PWDs, seniors, and students. But starting this year, I’m not entirely sure which month, but drivers began shouldering it,” Mopas said in Filipino then.
READ: LTFRB: Grab PH may face franchise suspension over discount issue
But Guadiz said that should not be the case, maintaining that all TNCs must assume the 20-percent discount.
big slots 777“That’s the law we have been implementing here in LTFRB and we are bound by that law because before they are given the franchise, that memorandum circular is already there,” Guadiz explained.
Guadiz later told reporters the LTFRB is leaning towards having TNCs shoulder 80 percent of the 20 percent fare discount, with the remaining 20 percent to be covered by operators.
During Tuesday’s Senate hearing, Tulfo asked the LTFRB chief if it was possible to refund drivers and operators who had shouldered the discounts.
“That’s part of our hearing, sir, and we will be coming up with a resolution by the end of this month and in no chances we will agree with your conclusion,” Guadiz replied.
For Tulfo, it appears that TNC owners are fooling their riders since there’s an existing LTFRB memorandum circular indicating that TNCs must shoulder the discount and not the drivers.
In a press conference after the hearing, Tulfo maintained that neither drivers nor operators should be burdened with these fare discounts, emphasizing that TNCs should be the ones to shoulder them.
“Dapat ipapasa ‘yan talaga sa TNC company. Kasi kumikita [naman] ang TNC company. It’s about time na dapat ang singilin ay TNC companies,” he said.
(That should really be passed on to the TNC company because they are earning. It’s about time that TNC companies should be the ones charged.)
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“When we say ‘operator,’ it also includes the driver at the same time. This is because there are instances where the driver of the vehicle is also the operator. This is often the case — the driver is also the owner of the vehiclehondawin,” he explained.
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