After setting a price cap for booking and platform fees for app-based taxis which indicates approval of such operation, the Land Transportation Franchising and Regulatory Board (LTFRB) has revived the fixed pick-up rate for ride-hailing services in a bid to level the playing field for both the public utility vehicle sectors (PUVs).

The LTFRB earlier declared that the booking fee must either be 20 percent of the fare or P60—whichever is lower—for app-based taxis while the fixed pick-up rate for TNVS was briefly implemented during the Christmas season.

Both taxi and Transport Network Vehicle Service (TNVS) sectors have been complaining of rising operational costs due to unstable oil prices and the LTFRB sees the measure as a way coping with rising costs.

LTFRB chairman Vigor D. Mendoza II said the revival of the LTFRB Memorandum Circular 2025-058 that set the guideline and fixed amount for pick-up fare rates will serve as middle ground between the concerns raised by the TNVS drivers and the complaints of commuters form unauthorized and unregulated pick-up charges.

Th revival of the fixed pick-up rate for TNVS is under the LTFRB Memorandum Circular 2026-059 which will take effect after the publication of the newspaper of general circulation.

“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. In this case, the revival of the pick-up fare implementation will serve both ends,” said Mendoza.

As a background, the pick-up fare system was crafted as a solution of the LTFRB amid complaints raised by some commuters over what they described as unreasonable price surge in booking ride-hailing services especially during rush hours.

At that time, the traffic situation in Metro Manila was already a concern due to the onset of the 2025 Christmas season. The study and analysis made by the LTFRB, backed by consultations with concerned sectors, revealed the challenges that TNVS drivers face in their daily operation, especially in dealing with traffic in Metro Manila.

The memorandum was later lifted in the first week of January this year but in the past few months, the same issues and concerns have been reaching the LTFRB in relation to the average speed of travel that reveals a slow travel time due to traffic problems especially in major roads in Metro Manila that includes EDSA.

In reviving the pick-up fare system, the LTFRB also took into consideration the operational data which showed that TNVS drivers spend significant time and fuel traveling from their booking acceptance point to passenger pick-up locations.

The fixed pick-up rate

Based on the LTFRB Memorandum Circular 2025-058 issued last year, the pick-up rat was fixed to the following:

For hatchback/subcompact, the price cap is P24 within the 1-kilometer radius; P48 within the 2 km radius, P72 within the 3km radius, P96 within 4 km radius and P120 within the 5km radius.

For sedan type TNVS, the rate is P26 starting the 1-kilometer radius, P52, P78, P104, and P130 within the 5km radius. For AUV/SUV type TNVS, the charge within 1 km radius, P58, P87, P116 and P145 within the 5km radius.

For Premium TNVS, the rate is P58 within the 1 km radius, P116 within the 2km radius, P173 within the 3km radius, P231 within the 4km radius and P289 within the 5km radius.

But why?

Mendoza explained that the daily struggle that TNVS community faces contributed to booking problems and service shortages which eventually affects the riding public.

“There is a need to revive the fixed Pick-Up Fares under MC No. 2025-058, which the Board previously found reasonable, in order to prevent service shortages, ensure the availability of rides across all areas, and protect the riding public from unauthorized or improvised pick-up charges,” the new Memorandum Circular under LTFRB 2026-059 read.

Limitations

Just like the booking fees for app-based taxis, Mendoza pointed out that the revival of the pick-up fare rate comes with a prohibition to TNVS to charge pick-up up rate beyond the five-kilometer radius.

“TNCs (Transport Network Companies) are directed to limit the matching radius to five (kilometers to minimize passenger waiting time and operational costs. No Pick- Up Fare beyond the five-kilometer radius amounts above shall be imposed or collected,” the memo rad.

The LTFRB also pointed out that TNCs shall not collect any share, commission, or impose a service fee derived from the Pick-Up Fare.

Mendoza said the pick-up fare system was crafted to assist the TNVS drivers and therefore, all the proceeds of that system go to them, adding that TNCs are also barred from charging separate pick-up, booking, convenience, or similarly denominated charge.