By Aaron Recuenco
The Land Transportation Franchising and Regulatory Board (LTFRB) has reinstated fixed pick‑up rates for ride‑hailing services, citing the need to balance commuter protection with the operational struggles of drivers.
Officials explained that the measure was revived to cope with rising fuel prices, worsening traffic conditions, and mounting complaints over unauthorized or excessive pick‑up charges.
LTFRB Chairman Vigor D. Mendoza II said the fixed rates serve as a “middle ground” between commuters’ concerns about surging costs and the daily challenges faced by Transport Network Vehicle Service (TNVS) drivers.
The agency noted that operational data showed TNVS drivers spend significant time and fuel traveling from booking points to passenger pick‑up locations, often leading to service shortages.
By setting a clear price cap, the LTFRB aims to ensure ride availability, prevent improvised charges, and protect commuters from unfair practices.
Under Memorandum Circular 2026‑059, the revived system limits pick‑up fares within a five‑kilometer radius, with rates varying by vehicle type.
The LTFRB also prohibited Transport Network Companies from collecting commissions or imposing additional service fees on pick‑up charges, ensuring that proceeds go directly to drivers.
Mendoza stressed that while commuter welfare remains a priority, the policy was crafted to address the economic realities of the TNVS community.
“Reviving the fixed pick‑up fares is necessary to prevent shortages, guarantee ride availability, and safeguard the public from unauthorized charges,” the circular stated.
