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Business

Davao delivery riders ask DOLE to probe reported GrabFood fare cuts

The United Davao Delivery Riders Association says riders' pay per booking has dropped sharply since regulators fined Grab-owned Move It P555.75 million, and it wants labor officials to step in.

DavaoNews Desk · based on reporting by SunStarFri, Nov 13, 6:26 PM
Photo: SunStar

A Davao City riders' group is asking the Department of Labor and Employment (DOLE) to investigate what it describes as sudden, steep cuts to the delivery fares GrabFood riders receive nationwide, according to a statement the group sent to SunStar.

The United Davao Delivery Riders Association (Uddra) said the reductions came after the Land Transportation Franchising and Regulatory Board (LTFRB) imposed a P555.75-million fine on Move It, which the group identified as a company owned by Grab Philippines. Uddra said it suspects the cost of the penalty is being shifted to riders through lower pay.

The group cited crowdsourced screenshots of earnings and booking records from riders in Cebu, Iloilo and Davao. It said these showed some fares reportedly falling to as low as P1 per booking, and cuts of at least P6 per delivery for other riders. Uddra said its own monitoring in Davao City found that fuel, motorcycle upkeep, mobile data and other work costs already take a large share of riders' earnings.

The association argues that the changes were made without consulting riders and may run against Article 100 of the Labor Code, which bars employers from arbitrarily reducing or withdrawing benefits and established practices. It also invoked the constitutional provision recognising workers' right to take part in decisions affecting their livelihoods. The riders said they are "not merely components of the digital economy."

Uddra asked DOLE to investigate fare reductions by GrabFood and other platforms, require Grab Philippines to disclose how it computes delivery fares, ensure riders are consulted before major pay changes, and set up safeguards against arbitrary cuts.

The group also repeated its call for a P80 base fare plus P20 per kilometre, and for an end to what it called unfair bundled delivery schemes.

The statement, as published, did not include a response from Grab Philippines or DOLE.

Why it matters for Davao

Food delivery riders in Davao City say lower fares are cutting into earnings already squeezed by fuel and maintenance costs, and a DOLE review could shape how platform workers in the city are paid.

This article was written by the DavaoNews desk with AI assistance, using reporting by SunStar. Facts come from the original report, which we credit and link below. Our editorial policy

Read the original at SunStar

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