The Socio-Economic Impact of Lease-To-Operate and Rent-To-Own Payment Schemes on Transport Network Vehicle Service Drivers’ Livelihood and Service Quality in Public Transport Operations in the National Capital Region

Abstract

This study examined how lease-to-operate and rent-to-own payment schemes influence payment scheme choice, livelihood stability, and service quality among Transport Network Vehicle Service (TNVS) drivers in Metro Manila, guided by the Theory of Planned Behavior (TPB). A quantitative, cross-sectional correlational design was employed among 300 active TNVS drivers selected through purposive sampling using a structured and validated questionnaire. Data were analyzed using descriptive statistics, correlation, multiple linear regression, binary logistic regression, mediation analysis, and independent samples t-tests. Results showed that 74% of drivers preferred rent-to-own, while 56% currently operated under this arrangement, indicating a gap between preference and actual participation. Subjective norms and perceived behavioral control significantly predicted behavioral intention, while perceived behavioral control was the significant predictor of payment scheme choice. Behavioral intention neither significantly predicted nor mediated payment scheme preference, and no significant differences in livelihood stability or service quality were found between the two payment schemes. These findings indicate that payment decisions depend more on drivers’ practical capability and operating conditions than on intention alone. The study therefore developed the SABEQUIL Framework as an evidence-based guide for drivers, operators, regulators, and the broader TNVS community. The framework emphasizes strengthening driver capability and control over payment obligations, clear and secure payment rules, supportive social learning, flexible payment arrangements, fair and non-coercive protections, and consistent livelihood and service quality standards across both schemes. Rather than favoring rent-to-own or lease-to-operate, SABEQUIL promotes conditions in which either arrangement can operate fairly and sustainably while supporting driver welfare and realistic payment choices. Further validation through broader samples, longitudinal and qualitative approaches, and objective financial and operational data is recommended. The study supports SDG 8 – Decent Work and Economic Growth, SDG 9 – Industry, Innovation and Infrastructure, and SDG 11 – Sustainable Cities and Communities, contributing to socio-economic, transportation, community, policy, and institutional sustainability through fairer payment arrangements and sustainable TNVS operations.