Angkas cuts commission to 18% amid fuel cost pressures

RIDE-HAILING platform Angkas said it will reduce its commission rate to 18% from 20% to help rider-partners cope with rising fuel costs.

“We will temporarily lower our commission. After discussing with our team, we will lower our commission for all our bikers by at least to 18% while still maintaining the tiered commission scheme as added incentives,” Angkas Chief Executive Officer George I. Royeca told a committee hearing at the House of Representatives on Wednesday.

He said Angkas currently imposes a 20% commission rate on all biker-partners, adding that the company will retain its tiered model, where the commission decreases to 15% after eight rides and may be fully removed after 25 rides.

Angkas made the move following calls to lower commission rates as fuel prices rise amid the ongoing conflict in the Middle East.

“The tiered commission scheme was done in consultation with our bikers, like all things resources are limited. We did this scheme to prioritize those that depend on our platform,” Mr. Royeca said.

Angkas operates under the pilot study of the Department of Transportation, implemented through the Land Transportation Franchising and Regulatory Board.

The proposed Motorcycles-for-Hire Act, which seeks to amend Republic Act No. 4136, aims to legalize motorcycle ride-hailing services by classifying them as public utility vehicles.

Meanwhile, inDrive said it maintains a 10% commission rate in the Philippines and will reduce this by 1% during peak hours to support its driver-partners.

Other ride-hailing platforms have also committed to study the possibility of lowering commission rates amid rising fuel costs. — Ashley Erika O. Jose