Manila: The Land Transportation Franchising and Regulatory Board (LTFRB) has reinstated the fixed pickup fare system for ride-hailing services as a response to concerns expressed by Transport Network Vehicle Service (TNVS) drivers over rising operational costs.
According to Philippines News Agency, LTFRB Chair Vigor Mendoza II announced the revival of Memorandum Circular 2025-058, which outlines the guidelines and specific amounts for pickup fare rates. This move aims to balance the interests of TNVS drivers and commuters who have complained about unauthorized and unregulated pickup charges.
Mendoza emphasized the importance of considering both commuter welfare and the concerns of public transportation sectors. He stated that the reinstatement of the pickup fare system is intended to address both ends of the spectrum.
The pickup fare system was initially introduced in December 2025 and was in effect until early January 2026 during the Christmas season. It was crafted by the LTFRB as a response to complaints about unreasonable price surges in ride-hailing bookings, particularly during peak hours.
The LTFRB's decision to revive the system was based on a comprehensive study and analysis, supported by consultations with relevant sectors. This analysis highlighted the challenges faced by TNVS drivers, especially in navigating Metro Manila traffic.
The revived system takes into account operational data showing that TNVS drivers invest considerable time and fuel traveling from their booking acceptance point to passenger pickup locations. The exclusion of this distance component was contributing to booking issues and service shortages.
Under the newly issued Memorandum Circular 2026-059, the fixed pickup fare rates are as follows:
- For hatchback and subcompact vehicles, the rate is PHP24 within a 1-kilometer radius, up to PHP120 within 5 kilometers.
- For sedan-type TNVS, the rate starts at PHP26 within 1 kilometer, up to PHP130 within 5 kilometers.
- For AUV- and SUV-type TNVS, the rate starts at PHP29 within 1 kilometer, up to PHP145 within 5 kilometers.
- For premium TNVS, the rate is PHP58 within 1 kilometer, up to PHP289 within 5 kilometers.
The memorandum prohibits charging a pickup fare beyond a 5-kilometer radius and instructs Transport Network Companies (TNCs) to limit their matching radius to 5 kilometers to reduce passenger waiting times and operational costs.
Mendoza also clarified that all proceeds from the pickup fare are to be allocated directly to TNVS drivers, with TNCs being prohibited from taking any share, commission, or additional charges.
Further, TNCs are mandated to display the pickup fare as a separate line item in the fare breakdown shown to passengers before booking confirmation. They must also inform passengers of the total fare, including the pickup fare, before ride acceptance, and reflect the pickup fare as a distinct line item in the electronic receipt upon trip completion.
The LTFRB Memorandum Circular 2026-059 will become effective following its publication in a newspaper of general circulation.
