PWD, senior discounts to be shared 50-50 by ride-hailing app, operator: LTRFB | ABS-CBN

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PWD, senior discounts to be shared 50-50 by ride-hailing app, operator: LTRFB

PWD, senior discounts to be shared 50-50 by ride-hailing app, operator: LTRFB

Alvin Elchico,

ABS-CBN News

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MANILA -- The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a memorandum circular mandating a 50-50 sharing between operators and transport network vehicle services on the cost of fare discounts for students, senior citizens and persons with disabilities (PWDs). 

Starting April 7, drivers of TNVS and ride hailing apps will no longer shoulder the said 20 percent discount, except if the driver is also the operator or owner of the vehicle.

Earlier this year, the issue was highlighted in a Senate hearing where the chairman of the LTFRB himself declared that the discount should be shouldered by TNVS and not the drivers.

Chairman Teofilo Guadiz even floated the idea of a refund for drivers who have been bearing the discounts for years.

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DRIVERS, OPERATORS REACT

Driver Cielito Magalona said it will still affect drivers since they deal with the passengers on a daily basis. Magalona wonders what happens if the operator refuses to reimburse the driver for the discounts granted daily.

For driver-operator Rose Pagalilauan, it is unfair that operators will still bear a portion of the discount when it should be the transport network companies who should absorb it. But Pagalilauan says driver-operators have no choice but to accept it, if the circular becomes the official directive by April 7.

For driver-operator Romeo Eisma, the ruling is just fair and he's amenable to a 50-50 sharing, explaining that driver-operators must follow the law.

The LTFRB spokesperson Ariel Inton explained "Yung TNVS operator sila may ari ng sasakyan sa kanila po naissue ang certificate of public convenience para pong ibang denomination, like for instance taxi operator, yung taxi operator shouldres the discount.”

Inton said he is awaiting the official word from Guadiz on how the board intends to answer questions from stakeholders.

Laban TNVS President Jun De Leon says the ruling is unfair and unacceptable and the group has already filed a motion for reconsideration. De leon also asked about the propopsed refund last January 2025 when the issue was tackled in a Senate hearing. Guadiz then said that drivers who have been shouldering the 20 percent discount all these years should get their money back.

But the LTFRB has not issued any order related to the planned refund to drivers.

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