LTFRB Cuts TNC Commissions to Ease Driver Burden

The Land Transportation Franchising and Regulatory Board (LTFRB) has approved a reduction in commissions charged by Transportation Network Companies (TNCs), a move aimed at providing relief to thousands of platform-based drivers nationwide.

Under the new regulation, TNCs such as Grab, MoveIt, and other authorized operators must reduce their service fees from the current rate to a lower percentage of fare earnings. The directive takes effect within 30 days from issuance.

"This decision reflects our commitment to protect the welfare of our drivers while ensuring fair business practices in the industry," LTFRB Chairman Teofilo Guadiz said in a statement.

The commission reduction comes amid growing complaints from drivers about declining earnings due to increased fuel prices, vehicle maintenance costs, and the percentage taken by TNC platforms. Industry data shows drivers currently receive only 70 to 75 percent of gross fare revenues.

TNC operators have expressed concerns about the impact on their business operations. Industry representatives argue that reduced commissions could affect their ability to invest in technology, safety features, and customer service improvements.

The LTFRB estimates the new rates will increase driver take-home pay by approximately 5 to 8 percent depending on trip volume. The agency conducted public consultations with driver groups, transport cooperatives, and TNC representatives before finalizing the policy.

Driver groups have welcomed the development. The Pinag-isang Samahan ng mga Tsuper at Operators Nationwide expressed gratitude but said more support is needed. They called for additional measures including fuel subsidies and regulated minimum fare rates.

The Philippines has approximately 1.5 million registered TNVS and TNC-affiliated drivers. The industry saw significant growth during the pandemic as commuters sought safer transportation alternatives.

The LTFRB will monitor compliance and has warned TNCs that violations could result in penalties including suspension of authority to operate. The agency also encouraged passengers to report any service disruptions during the transition period.