January 14, 2025 | 3:38pm
MANILA, Philippines — A famous motorcycle ride-hailing app was reprimanded for allegedly taking a 20% cut from drivers’ tips and charging them for insurance coverage.
During a Senate hearing on Tuesday, January 14, the Committee on Public Services, led by Sen. Raffy Tulfo, summoned multiple transport officials as well as players from transportation network companies (TNCs) to discuss several bills.
Tulfo then raised an anonymous concern about the TNC Joyride. The complaint alleged that riders were being charged P600 annually for insurance.
It was also alleged that Joyride took a portion of riders’ tips.
“‘Yung tip ng rider, supposed to be sa driver nalang, ay may kaltas din sila na 20%. Pati tip? Goddamn. Hindi makatarungan at hindi makatao ang ginagawa nila,” Tulfo said, reading the complaint.
(The rider’s tip, supposed to be just for the driver, there is a 20% cut. Even the tip? Goddamn. What they are doing is unjustifiable and inhumane.)
The complaint said that other TNCs did not follow such a practice.
Joyride’s legal counsel, John Nikko Roxas, represented the company at the hearing. He neither confirmed nor denied the allegation.
“With regards to that Mister Chair, we’ll look into that but there are reports that have been, that we have receiving about that, but we’ll look into that,” Roxas said.
Land Transportation Franchising and Regulatory Board (LTFRB) Chair Teofilo Guadiz, who also attended the hearing, said that the practice was not in Joyride’s terms of reference.
“Definitely may hearing po tayo next week. Papaliwanagin ko po kayo bakit po nangyayari po ito. Asahan po ninyo na kayo unang-una kong tatawagin,” Guadiz said.
(Definitely we have a hearing next week. You will explain how this is happening. Expect that you will be the first to be called.)
Sen. Grace Poe mentioned that there is a law prohibiting employers from taking a portion of their employees’ tips.
While she did not specify which law this was, Republic Act 11360, which amended part of the Labor Code, states that “all service charges collected by hotels, restaurants, and similar establishments shall be distributed completely and equally among the covered workers, except managerial employees.”
“In the service industry, we have a law that says tips cannot be reduced, so I hope just there, I hope this extends to other services, particularly in transportation,” Poe said.
Tulfo brought up the possibility of providing a refund to drivers, as there must be a violation in the practice.
“We’ll comply, Mister Chair,” Roxas said.
Guadiz said the LTFRB has data on how many riders the TNC serves per day. However, it would be difficult to determine the exact amount that needs to be refunded.
Tulfo suggested that, even without the exact figure, the LTFRB could create a formula based on their data.
“We will be having a hearing next Friday. We will discuss that with the major players in the TNC industry,” Guadiz said.
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