The Land Transportation Franchising and Regulatory Board (LTFRB) has authorized ride-hailing service drivers to collect an additional fare while en route to passengers’ locations.
The policy, set to take effect on Saturday, Dec. 20, is outlined in LTFRB Memorandum Circular 2025-058.
Under the directive, Transport Network Vehicle Service (TNVS) drivers may begin charging passengers from the moment a booking is accepted until the pick-up point is reached.
This “pick-up fare” is fixed, ranging from ₱28 for subcompact vehicles to ₱289 for premium TNVS units, and will be added on top of the regular fare from the pick-up location to the destination.
LTFRB chairman Vigor D. Mendoza II said the maximum distance that the TNVS could charge their client is within five kilometers.
For instance a sub-compact TNVS could charge a pick-up fare of P28 if the passenger to be picked up is within the one-kilometer radius and a maximum of P120 if within the five-kilometer radius.
Car and sedan-type TNVS could collect from P26 to P130; AUV/SUV from P29 to P145 and Premium TNVS from P58 to P289.
The LTFRB is expected to release the fixed fare-system for every kilometer and for all types of TNVS.
Last week, the LTFRB issued a memorandum circular that put a limit, or a cap to the surge pricing in the TNVS amid complaints from the passengers of the government’s alleged helplessness in protecting them during holidays and peak hours.
Under the LTFRB Memorandum Circular 2025-056, the surge pricing must not exceed the B+C TNVS Fare Matrix—the B refers to the per kilometer per rate while the C refers to the per minute charge of the TNVS.
Currently, the hatchback and sub-compact has a flagdown rate of P35, sedan with P45, AUV with P55 and Premium with P145 flagdown rate. The per kilometer rate for hatchback and sub-compact is P13, sedan with P15, AUV with P18 and Premium with P36 per kilometer charge.
All of them have P2 per minute travel time except for premium with P4.
But the memo was met with criticisms from TNVS drivers who argued that the additional payment they collect from surge pricing compensate for the gasoline and time they spend in traffic gridlocks during rush hours and the Holiday season.
Mendoza said the Memorandum Circular on pick-up fare will be implemented starting Dec. 20, the same day that the LTFRB memo that reduced the surge pricing cap is implemented. Both the memos will be in effect until Jan. 4 next year.
“We understand the concerns raised by the TNVS drivers and the arguments they raised are backed by studies on travel time especially in Metro Manila. That is why we are implementing this measure as an acceptable and justified solution to balance the impact of the price surging reduction by 50% to the TNVS community,” said Mendoza. (Aaron Recuenco)
