Ride-hailing firms cut commissions amid higher fuel costs

MOTORCYCLE TAXI and ride-hailing firms have agreed to temporarily reduce commission rates as fuel costs rise, in a move that could ease pressure on drivers but weigh on platform margins.

The Land Transportation Franchising and Regulatory Board (LTFRB) said several transport network companies (TNCs) lowered their commission rates following calls to provide relief to driver-partners amid higher fuel prices linked to the ongoing conflict in the Middle East.

“This is really commendable and I extend my sincerest gratitude to these TNCs for heeding the call to give their share in helping the public transport sector. This will help our TNVS partners now that diesel and gasoline prices are very high,” LTFRB Chairman Vigor D. Mendoza II said in a media release on Sunday.

Motorcycle taxi providers JoyRide, Angkas, and Maxim reduced their commission rates to 18% from 20%, while Move It lowered its rate to 15% from 21%. Para Xpress and GrabBike also set their commission rates at 15%, according to the regulator.

For TNCs, the LTFRB said commission reductions would be capped at a maximum of 10 percentage points.

Ride-hailing firm Grab reduced its commission to 15% from 20%, while inDrive lowered its rate to 8.92% from 10%. JoyRide cut its commission to 10% from 20%, and AngCars reduced its rate to 8% from 10%.

Meanwhile, Lalamove Rides, Go Cab, and Pure Ride have temporarily waived commissions until further notice. — Ashley Erika O. Jose