The Land Transportation Franchising and Regulatory Board announced the return of the fixed pick-up fare system for ride-hailing services. This is in response to concerns from transport network vehicle service (TNVS) drivers regarding rising operational costs, as well as to protect commuters from unreasonable price surges from transport network companies (TNCs).
Under LTFRB’s Memorandum Circular Number 2026-059, the fixed pick-up fare will span a maximum of five kilometers from the commuter’s pick-up point. It will start at P24 per kilometer for a subcompact hatchback, P26 per kilometer for a sedan, P29 per kilometer for an AUV or SUV, and P58 per kilometer for a Premium TNVS ride.
The LTFRB first implemented the system in December 2025 to address similar concerns from commuters and drivers during the Christmas season. The government agency said that in the past few months, the same concerns have returned regarding slow travel time, especially on major roads within Metro Manila.
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The agency also added that it took into consideration operational data from TNVS drivers, which showed the significant time and fuel spent from their booking acceptance to the passenger pick-up location. This component, when unaddressed, contributes to service shortages which affect the riding public.
Under Memorandum Circular Number 2026-059, the LTFRB directs the following to all TNCs: (1) Clearly and separately show the pick-up fare in the total breakdown displayed for the passenger prior to the booking confirmation, (2) inform the passenger of the total fare including the pick-up fare before the acceptance of a ride, and (3) reflect the pick-up fare as a distinct line item in the electronic receipt and/or trip summary issues to the passenger upon the trip’s completion.
According to the LTFRB, the system was designed so that all proceeds from the pick-up fare go to the driver. In addition, TNCs are barred from charging separate pick-up, booking, and convenience fees, or similar charges.
“While commuters’ welfare is a priority, part of our mandate is also to ensure that the concerns of those from the public transportation sectors are heard,” said LTFRB chairman Atty. Vigor D. Mendoza II. “In this case, the revival of the pick-up fare implementation will serve both ends.”
