Baste backs delivery drivers’ business permit exemption

Move is supported by recent Supreme Court rulings and aims to alleviate financial burdens on these workers
‘NOT BUSINESS PARTNERS.’ Several members of the Davao Delivery Riders gather at San Pedro Square to file their petition for exclusion in the Business Permit Requirement to Davao City Mayor Sebastian "Baste" Duterte on Monday afternoon, January 22, 2024.
‘NOT BUSINESS PARTNERS.’ Several members of the Davao Delivery Riders gather at San Pedro Square to file their petition for exclusion in the Business Permit Requirement to Davao City Mayor Sebastian "Baste" Duterte on Monday afternoon, January 22, 2024.Ramcez Villegas/SunStar Photo
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DAVAO City Mayor Sebastian "Baste" Duterte has stated that delivery riders should be exempt from obtaining business permits.

During his Basta Dabawenyo program on Sunday, November 24, 2024, Duterte explained that while there is no current law supporting this exemption, the city could use recent Supreme Court rulings as a basis to craft an ordinance for delivery riders.

“Dili mana nimo sila pwede singlon ug bug-at kay pila lang may ginansiya ana unya kapoy mana nga trabaho (We can’t impose heavy requirements on them because they earn only a small income, and the work is tiring),” she said. 

He acknowledged that delays in addressing delivery riders' concerns were due to a lack of legal basis, but with the Supreme Court's rulings, the issue can now move forward. He assured that the decision would stand.

Former Davao City Councilor Pamela Librado noted that in 2019, she had advocated for an investigation into delivery companies regarding riders' conditions. She explained that while riders are required to obtain business permits, the high fees prevent many from complying.

“Dili man gyud ni sila negosyante so mao ni ilang mga kahimtang tung akoa silang gi habi habi nga gamay ilang sharing sa o kita sa Food Panda ug Maxim ng pahapa offboard sa mga riders (They are not business owners, so this is their situation. Their income from Food Panda and Maxim is small, and they also pay offboard fees),” she said.    

Librado also pointed out that while some companies do not require business permits, they still impose certain fees, and riders’ safety remains a concern, especially during bad weather.

She believes the Supreme Court's ruling, which clarified that riders are not business owners, provides a legal foundation for the exemption. Librado hopes the issue will be revisited by the council, amending the revenue code to provide riders with “peace of mind.”

In the case of Ditiangkin vs. Lazada E-Services Philippines, Inc., the Supreme Court ruled on September 21, 2022, that five riders were regular employees of Lazada, entitled to benefits and protections despite their independent contractor agreements. Similarly, the National Labor Relations Commission (NLRC) ruled in favor of seven Foodpanda riders in Davao City on December 7, 2022, declaring them regular employees.

The United Davao Delivery Riders Association (Uddra) has been advocating for the exemption since January 2024, citing a current fee burden of approximately P3,397, which is set to rise by 25 percent in 2025.

In response, Councilor Myrna Dalodo-Ortiz, along with Councilors Jesus Joseph Zozobrado III and Bai Hundra Cassandra Dominique N. Advincula, announced during the Aprubado sa Konseho on November 19, 2024, that they will file a resolution addressing delivery riders’ concerns, including recommendations for amendments to relevant ordinances. RGP

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