Suspend fees for food delivery riders – Davao City Council

DAVAO CITY – The Davao City Council has approved a resolution urging food delivery companies and the city business bureau to suspend the collection of fees for food delivery riders.

The resolution passed by City Councilor Pamela Librado-Morata last Tuesday was a subsequent resolution filed pending the previous resolution passed by the city council urging the review of the city's Revenue Code.

In a statement, Morata said requiring delivery riders to acquire business permit individually is impractical and inequitable.

She said some delivery riders have received text messages of their accounts "being closed due to non-payment of the said business permit."

On April 6, Morata passed a resolution urging the city government to review the Revenue Code "to match the needs of local delivery riders, to remove any unnecessary burden imposed upon them, and promote a fair system that will give our riders sufficient opportunity to earn." The resolution was also approved by the city council.

In her resolution last Tuesday, Morata said under the Revenue Code of Davao City, it is unlawful for any person or entity to conduct or engage in any business, trade, or occupation in the City of Davao without securing a mayor’s permit and paying the necessary fees to the city treasurer.

She added that food delivery riders are "required to secure a business or occupational permit for the continuance of their delivery operations and for the same to be considered as a legal undertaking."

However, she said by requiring such permits, "riders would need to pay the City Environment and Natural Resources Office even if they do not have waste disposal; they would also need to pay the Bureau of Fire Protection (BFP) fees and certificates even if they do not manage physical stores."

"They would need to shell out additional money for BIR registration," she added.

Morata said her office has conducted initial consultations with delivery riders. "Many are still paying loans for their motorcycles and are shouldering fuel expenses."

She noted that delivery riders are classified as "independent contractors or mere business partners." Morata said the classification exempts food delivery companies "from legal obligations to provide standard wages, benefits, and fair working terms and conditions."

"To require them to pay ₱4,000 for business permits in a situation where they do not have a stable income or tenure security is unjust," she added.