TNVS company inDrive to have low 10 percent commission rate in PH

Updated Mar 27, 2024 | Same topic: Automotive Industry Updates

The company says that this will provide decent livable wages for its drivers. 

International transportation network vehicle service (TNVS) company inDrive has announced that it will have one of the lowest commission rates in the industry. 

inDrive is an international ride-hailing service based in California

inDrive is an international ride-hailing service based in California

This decision by inDrive is touted to “empower drivers” by allowing them to keep a larger cut of their earnings. This, in turn, the TNVS company says, might contribute to making driving for the company a more sustainable profession. 

“We recently took notice that several transport associations have voiced out their requests for lower commissions from the TNCs. Since its establishment, inDrive has consistently prioritized implementing low commission fees across all countries where it operates including Asia,” said inDrive Business Development Manager for the Philippines Afanasii Petrov. 

“In keeping with this long-standing practice, we will introduce a commission rate of 10 percent when we resume our ride-hailing services in the Philippines. Furthermore, this standard commission rate will only be applied after a set period of operation in the country.” 

To express this in simpler terms, the company will only be taking a 10 percent cut of the fares their drivers collect. As a point of comparison, Grab currently takes a 20 percent commission from its drivers as per its official website. 

As shared by inDrive, it recognizes that drivers have a right to earn a livable wage. Furthermore, lower commission fees also fall in line with its vision where “people and communities have fair and equal opportunities to develop and prosper.” We can likewise surmise that this might result in more affordable fares as well. 

The company will only be taking a 10 percent cut of the fares their drivers collect

The company will only be taking a 10 percent cut of the fares their drivers collect

For now, however, inDrive’s operations within the Philippines remain suspended. This complied with the Land Transportation Franchising and Regulatory Board’s (LTFRB) cease and desist order that was issued against the company back in January 2024. The said order was due to alleged fare violations. Currently, inDrive says that it has worked hard to apply changes to its mobile phone app to comply with the said government agency’s standards. 

The company has since filed a proof of compliance, as well as a motion to lift its suspension back in January 26, 2024. 

For those unaware, California-based inDrive officially entered the Philippines last year to compete with TNVS giant Grab. It has been operating in over 614 cities in 47 countries since 2013, and it is said to be the second most downloaded mobility app since 2022. 

Catch more car news and automotive industry updates here on Philkotse

Cesar G.B. Miguel

Cesar G.B. Miguel

Author

Cesar Guiderone B. Miguel was born and raised in Iligan City, Lanao Del Norte. He graduated in 2010 with a Bachelor of Arts in English degree from Mindanao State University - Iligan Institute of Technology. He previously worked as a freelance writer for various websites, as a member of the Iligan City Disaster Risk Reduction Management's training staff, and as a medical sales representative.

Facebook: https://www.facebook.com/goridus.goridus

View more