A motorcycle rider negotiates with a potential customer during rush hour near the LRT Monumento station in Caloocan City on January 11, 2023. George Calvelo, ABS-CBN News/File

MANILA — The Land Transportation Franchising and Regulatory Board (LTFRB) is set to order a refund to drivers who shouldered the mandatory discounts for students, senior citizens and persons with disabilities. 

LTFRB asks Grab to explain driver cuts on senior citizen, PWD, student discounts

This was revealed by LTFRB chair Teofilo Guadiz on Tuesday during a Senate Committee on Public Services hearing on the legalization of motorcycles for hire.

Committee chair Sen. Raffy Tulfo recalled that in a previous hearing, it was revealed that the mandatory discounts have discouraged riders from accepting bookings from students, senior citizens, and PWDs because they have to shoulder a part of the discount.

Guadiz explained that currently, transportation network companies (TNC) have different cost-sharing schemes.

"In the case of these companies, the 20 percent discount is shouldered by the TNC for Joyride, for Angkas. However, for Grab, 40 percent is shouldered by Grab and 60 percent is shouldered by the TNVS operator. It's not the driver. Yung may-ari po nung sasakyan," Guadiz explained.

"Joyride, 80 percent is shouldered by the operator, 20 percent shouldered by the TNC. Yun pong may-ari ng app. Operator po is yung may-ari ng sasakyan po. So, ganun po ang breakdown nila," Guadiz added.  

Tulfo wants the TNC to shoulder the cost of the discount. 

Guadiz said they are already drafting rules to that effect.

Grab ready to deactivate 8,000 TNVS with no provisional authority

When Tulfo asked if the riders who had to shoulder the discounts should be given refunds, Guadiz answered affirmatively. 

"Ah, parte po ng hearing namin yan sir and we will be coming up with a resolution by the end of this month and in all chances we will agree with your conclusion Mr. Chair," Guadiz aid.

Pressed by Tulfo for a timeline for the refund, Guadiz said it could come by the end of this month. Guadiz, in a separate interview, said that they are set to issue new rules on how the discounts will be shouldered.

Probe sought into alleged improper application of SC, PWD discount by ride-hailing, food delivery apps

"Yes, by February 1, we will be issuing a memorandum that would detail there kung ano po yung hatian doon sa 20 percent discount," Guadiz said.

Guadiz however indicated that the TNC may be made to shoulder a majority of the discount only.

"Base po sa aming pag-aaral, posibleng po 80 percent ang required namin sa TNC operator and then about 20 percent po doon sa operator," Guadiz said.

Meanwhile, as for the refund of the discounts that riders had to shoulder, Guadiz said they are exploring ways to implement the refund to the riders.

"Yung refund po, humingi na po kami ng listahan sa mga TNC operators and right now ho, after looking into it po, we will require  them either a refund or a credit pag ginamit po nila yung applications," Guadiz said, even as he declined to give an estimate of the amount involved.

RELATED VIDEO