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Surge pricing cap implementation for TNVS moved to Dec. 20

Published Dec 17, 2025 12:14 pm
(LTFRB)
(LTFRB)
Amid the intense criticisms and even threats from drivers and operators of ride-hailing services, the Land Transportation Franchising and Regulatory Board (LTFRB) moved the implementation of the reduction of the surge pricing for Transport Network Vehicle Services (TNVS) to Saturday, Dec. 20.
The implementation of the memorandum for 50 percent reduction of surge pricing was supposed to be implemented on Tuesday, Dec. 17, but LTFRB chairperson Vigor D. Mendoza II said they issued a Resolution to move date in response to the request of the Transport Network Companies (TNCs), particularly Grab Philippines.
“We understand the concerns raised by the TNCs in requesting the agency to give them more time to prepare for the fare adjustment in their system,” said Mendoza.
In the LTFRB Resolution, it said additional time is indeed necessary to complete the corresponding system configurations and operational adjustments to properly reflect the revised surge pricing cap.
The additional time is also aimed at ensuring adequate information dissemination to all affected drivers and other stakeholders on the combined effects of the said pricing adjustments.
The LTFRB earlier issued Memorandum Circular No. 2025-056 which prescribed the reduction of the surge pricing cap TNVS operations amid complaints from passengers and other commuters groups in the past few years of what they described as unreasonable fare increase in ride-hailing services.
The Memo specified the guideline on the computation of surge pricing, the goal is to set a cap or limit to the surge pricing. 
The order did not sit well with TNVS groups which started criticizing the LTFRB in social media platforms. Some groups even threatened to hold boycott during the surge pricing implementation period, or until Jan. 4.
As a balancing act, Mendoza said the Memorandum bars TNCs from taking any share from the surge pricing from TNVS drivers. 
Grab Philippines, in its letter to the LTFRB, said the request for brief adjustment of the implementation timeline is necessary to allow for proper consultation and cascading with our driver-partners.
The consultation, it said, includes timely issuance of platform advisories and thorough orientation on the correct computation and application of the revised surge pricing parameters, which is essential for a smooth and consistent rollout.
“The requested adjustment in implementation is also necessary to provide Transport Network Companies (TNCs) adequate time for technology configuration. This period is required to complete the system programming refinements needed for the accurate, consistent, and fully compliant application of the revised surge pricing cap on the platform,” the letter from Grab Philippines read.
“This request is submitted solely for implementation readiness and system compliance purposes, and without prejudice to the full implementation of the Memorandum Circular upon the lapse of the requested adjustment period,” it added.
Mendoza, however, said the decision to move the implementation of the Memorandum Circular shall not be construed as its modification or repeal of the agency decision on surge pricing cap until January 4 next year.
He said the LTFRB Resolution directed the TNCs to complete the necessary system programming, algorithm adjustments, and information dissemination to ensure full compliance upon effectivity.
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