CEBU, Philippines — Cebu City Council’s Local Finance Committee is currently studying means to subject delivery platform companies, with or without local offices, to the taxing jurisdiction of the city.
While the city wants a fair share of the revenues of these delivery apps and platforms, the council is also looking into the protection of delivery riders who are from Cebu City.
In particular, the local legislators want fair compensation and benefits, including access to healthcare and insurance regardless of whether they work full-time or part-time, provision of safety nets and social security, and road safety gears.
The City Council will invite representatives from delivery platforms to an “executive session” on November 20 to further discuss policies involving delivery platforms and their riders. They will also invite actual riders and representatives from the Department of Labor and Employment.
“These companies have revenue streams from riders, merchants and customers as they charge commission fees, service fees and platform fees to those who use their apps,” said City Councilor Rey Gealon.
During the discussions, City Councilor James Cuenco believes that delivery app companies could also be operating with unfair business practices which needed to be looked into.
But Councilor Joy Pesquera pointed out that while it is indeed important that the city government gets its share from these companies, they also need to ensure that riders under these companies will not be on the losing end as it may be taken from them and lessen their net pay.
“Because nana man kaha ni siyay employee-employer relationship, so atong pangutan-on sila…naa nay mga benefits, kinahanglan matan-aw nato, basin special kind ni siya whatever, at least ma-enlightened ta sa council…mu-follow na gyud na sila sa atong labor law, if that’s the case, so it’s better to have DOLE in our executive session,” added Councilor Franklyn Ong, President of the Association of Barangay Councils.
Gealon heard reports of “shadow banning scheme” that while riders can still access their apps, they often receive only one or two bookings, even in peak hours, making them feel effectively "banned" from the platform.
“Shadow banning can be considered a form of constructive dismissal as it severely deprives the rider of their livelihood,” Gealon stressed during his privilege speech at the recent City Council session.
Gealon also said that many riders are relying on a per-delivery pay structure that can be unpredictable. Limited access to benefits such as healthcare, social security, and insurance, which every worker should rightfully have.
“And too often, they are subjected to discrimination, unfair treatment, or cancellation of orders that leave them uncompensated for their efforts.” — Kristin de Dios /DGI (FREEMAN)