LTFRB urged to probe Grab’s commission rate

MANILA, Philippines — Transport network company (TNC) Grab has found itself at loggerheads with some of its drivers due to an alleged increase in commission rate taken from the earnings of its partners.

Drivers are asking the Land Transportation Franchising and Regulatory Board (LTFRB) to look into the commission of TNCs that could go as high as 21 percent.

Jun de Leon, Laban TNVS president, said the LTFRB should regulate the commission of TNCs that own and operate the online platforms used by transport network vehicle service units.

“The LTFRB should not only regulate fares but also the commission of TNCs,” he said.

The group claimed that Grab increased its commission by at least two percent, depending on the tier or level of service rendered by the partner.

According to De Leon, drivers on platinum tier will be deducted a 17 percent commission from the previous 14 percent. Those on the gold tier will be deducted 19 percent commission while silver and member tiers will go up to 20.5 and 21 percent, respectively.

De Leon said the increase in commissions would be an added burden for drivers amid the soaring prices of fuel.

Grab head of mobility EJ dela Vega, however, said the new commission scheme was developed by the company’s partner drivers.

He said it is in line with a new fare rebate program by the company wherein the drivers can get lump sum cash every two weeks depending on their performance.

The increase in Grab’s commission rate will reduce the take-home income of its drivers, Sen. Grace Poe said.

“Instead of eating up a slice of their earnings, they should get more in terms of social protection and benefits,” Poe, who chairs the Senate committee on public services, said. – Paolo Romero