Ride-hailing apps cut commissions to boost driver income

Ride-hailing firms will reduce their commission rates by two to six percentage points, the Land Transportation Franchising and Regulatory Board (LTFRB) said, following commitments from motorcycle platforms and transport network companies (TNCs).

Motorcycle services such as JoyRide, Angkas and Maxim will cut commissions from 20 percent to 18 percent. Move Itwill reduce its rate from 21 percent to 15 percent, while Para Xpress and GrabBike will also lower rates from 20 percent to 15 percent.

In a message to DAILY TRIBUNE, House Committee on Ways and Means chair Romero Quimbo welcomed the move, saying it would help boost drivers’ take-home income.

“I am thankful that they listened to the appeal of Congress and their hardworking riders,” he said, while noting that a larger reduction would be preferable.

“A uniform 15 percent commission across all platforms should be pushed by the LTFRB so it will be standardized,” Quimbo added.

Meanwhile, 18 TNCs submitted proposals to cut commissions, with reductions ranging from zero to 10 percentage points.

Among them, Go Cab will lower commissions from 10 percent to zero, while JoyRide Car will cut from 20 percent to 10 percent. Unla Lal Corporation will reduce rates from 20 percent to 13 percent, Maxim from 12 percent to 5 percent, and PeekUp from 21 percent to 15 percent.

A five-percentage-point reduction will also be implemented by Grab, Toktok and Para Xpress, among others.

Other firms will implement smaller cuts, including inDrive, which will lower its commission from 10 percent to 8.92 percent. Pure Ride will maintain a zero-percent commission.

The House panel earlier urged ride-hailing firms to reduce commissions to help drivers cope with rising costs. JoyRide and Angkas began implementing a two-percentage-point reduction effective 20 April.