LTFRB Orders Ride-Hailing Companies to Shoulder 20% Discounts
New rule says fare discounts shouldn't fall on drivers.
(SPOT.ph) Starting April 7, a new directive from the Land Transportation Franchising and Regulatory Board (LTFRB) orders ride-hailing companies and operators to split the cost of the 20% discount given to senior citizens, students, and persons with disabilities—finally putting an end to the practice of passing it on to drivers.
We know what you’re thinking: Wait, drivers were the ones covering those discounts? Yup—at least for some operators. That might explain why some drivers have been accused of hesitating to accept, or even canceling on, passengers who avail of these fare discounts.
Under Memorandum Circular No. 2025-10, drivers should only take on the cost if they’re also the registered operator of the vehicle.
LTFRB Chairperson Atty. Teofilo Guadiz III said the move was prompted by inconsistencies in how different Transport Network Companies (TNCs) apply discounts. In a Senate hearing in 2024, several TNVS companies admitted that drivers were made to shoulder most of the discount—JoyRide at 80%, Grab at 60%, and GET Express at 50%. The new rule aims to "categorically set and avoid further confusion" over who is responsible for the cuts.
“Ang 20% diskwento sa pamasahe ay isang pribilehiyong itinatakda ng batas... Inaasahan naming lubos itong susundin ng mga TNC at TNVS operator,” Guadiz said in a statement.
Also read: Splitting the Bill? DOJ Clarifies PWD Discounts for Dine-In and Delivery
A new call to the LTFRB
Prior to this policy, the LTFRB Technical Division Head Joel Bolano said they left it up to TNVS, TNC, and drivers to sort out how fare discounts would be handled, saying its role was limited to enforcement. The agency would only step in once a formal complaint was filed—which is what ultimately led to the new directive.
However, TNVS drivers are now seeking compensation for the discounts they've shouldered.
Laban TNVS, a group representing ride-hailing app drivers, has called on the LTFRB to order TNCs to refund the fare discounts that were passed on to drivers in the past. Laban TNVS President Jun de Leon said he filed a motion on March 27 to delay the new memorandum until the issue of past reimbursements is addressed.
De Leon said that implementing the new policy without resolving the reimbursement issue could legitimize unfair practices in the past. The 20% discount is backed by several laws, including the Expanded Senior Citizens Act (RA 9994), Student Fare Discount Act (RA 11314), and Magna Carta for Persons with Disability (RA 9442)—which means these fare reductions aren’t optional.
The LTFRB has yet to respond to these calls for reimbursement.
Also read: PWD Discounts Must Be Honored Without Additional ID Checks, DOJ Says