Davao City, Philippines – The City Council has approved an amendment to City Ordinance No. 0612-21, effectively exempting delivery riders from the obligation to secure business permits. This development, finalized during the council’s regular session on Tuesday, comes in response to calls from delivery riders for relief from the financial burden of various fees previously mandated.
Under the original ordinance, food delivery riders were required to pay a series of fees, including a business permit fee of ₱1,000, a barangay clearance fee of ₱100, a tax clearance fee of ₱50, a delivery vehicle sticker fee of ₱200, a health certificate fee of ₱50, and a laboratory fee of ₱80, among others.
Councilor Myrna Dalodo-Ortiz, chairperson of the Committee on Trade, Commerce, and Industry, emphasized the need to alleviate these burdens, citing the precarious income levels and high operating costs faced by delivery riders. “Given the potential impact on the livelihood of thousands of delivery riders across Davao City, upon the direction of our Local Chief Executive Mayor Sebastian Duterte, it is crucial that we act swiftly and address their concerns,” she stated during the session.
Under the amended ordinance, delivery riders are now required to obtain an individual occupational permit instead of a business permit. The new permit carries a significantly reduced annual fee of ₱125.
Clarifying the Amendment
In a media interview, Dalodo-Ortiz underscored that delivery riders do not qualify as business owners, which justified the adjustment. “Ang ilaha is delivery in terms of services sa mga katawhan sa ato’ng syudad sa Davao. Unya wala sila’y permanent office or tindahan diri. Mao na it follows, dili pod sila pangayuan og mga certificate. We find it proper nga mao na grant ang ila’ng request (Their job is to deliver in terms of services to the people in our city of Davao. They also don’t have a permanent office or shop here. So it follows, they will not be asked for certificates. We find it proper to grant their request),” she explained.
The councilor also reminded riders to pay the occupational permit fees on time to avoid penalties. “Naka-stipulate sa atoang ordinansa nga kinahanglan magbayad pod mo on time kay maski ingon ana ka gamay naa gihapon mga surcharge, penalties nga i-impose. Basi’g mas dako pa ang surcharge and penalties kaysa sa amount due (It is stipulated in our ordinance that you must pay on time because even if it is small, there are still surcharges and penalties that will be imposed. Since it could be that the surcharge and penalties are bigger than the amount due),” she cautioned.
Supporting Livelihoods
The amendment reflects the city’s commitment to supporting its delivery riders, who have become an integral part of local commerce and essential services. By removing unnecessary financial barriers, the ordinance aims to ensure a more sustainable livelihood for these workers while maintaining a streamlined regulatory framework.
Delivery riders have welcomed the decision as a timely relief, especially as the gig economy continues to grow and adapt to new challenges.