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Advocates Philippines
LTFRB Gives Ride-Hailing Firms More Time Before Surge Pricing Cap Takes Effect
Photo credit: LTFRB
The Land Transportation Franchising and Regulatory Board (LTFRB) has approved the request of transport network companies (TNCs) to move the implementation of the surge pricing cap to December 20, giving ride-hailing platforms additional time to adjust their systems.
In a press release dated December 17, 2025, the LTFRB said the implementation was originally scheduled for December 17 but was postponed after TNCs raised concerns about readiness and system preparation. The decision was made under the guidance of Department of Transportation (DOTr) Secretary Giovanni Z. Lopez.
LTFRB Chairperson Atty. Vigor D. Mendoza II said the agency considered the request reasonable, noting that the companies needed more time to ensure a smooth rollout of the fare adjustments.
“We understand the concerns raised by the TNCs and on the part of the LTFRB. Madali din naman kaming kausap lalo na kung valid naman mga reasons na binigay,” Mendoza said.
He added that the extension would allow companies to complete the necessary system changes and properly inform drivers and other stakeholders about the revised pricing scheme.
“Additional time is necessary to complete the corresponding system configurations and operational adjustments to properly reflect the revised surge pricing cap, and to ensure adequate information dissemination to all affected drivers and other stakeholders on the combined effects of the said pricing adjustments,” Mendoza said, citing the recently issued Board Resolution extending the implementation to December 20.
The surge pricing cap adjustment stems from Memorandum Circular No. 2025-056, which ordered a reduction in surge pricing for Transport Network Vehicle Service (TNVS) operations. The policy was introduced following long-standing complaints from passengers and commuter groups who described surge fares as unreasonable over the past few years.
Grab Philippines, in a letter to the LTFRB, explained that the brief adjustment period is needed to allow proper consultation with its driver-partners. The company said this includes issuing platform advisories and conducting thorough orientations to ensure drivers fully understand the revised computation and application of surge pricing.
“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.
Despite the delay, Mendoza clarified that the extension does not mean the policy has been modified or repealed. He stressed that the LTFRB’s decision on the surge pricing cap remains in effect until January 4 next year.
He also said the LTFRB Resolution directs TNCs to complete all system programming, algorithm adjustments, and information dissemination to ensure full compliance once the revised surge pricing cap officially takes effect.
In a press release dated December 17, 2025, the LTFRB said the implementation was originally scheduled for December 17 but was postponed after TNCs raised concerns about readiness and system preparation. The decision was made under the guidance of Department of Transportation (DOTr) Secretary Giovanni Z. Lopez.
LTFRB Chairperson Atty. Vigor D. Mendoza II said the agency considered the request reasonable, noting that the companies needed more time to ensure a smooth rollout of the fare adjustments.
“We understand the concerns raised by the TNCs and on the part of the LTFRB. Madali din naman kaming kausap lalo na kung valid naman mga reasons na binigay,” Mendoza said.
He added that the extension would allow companies to complete the necessary system changes and properly inform drivers and other stakeholders about the revised pricing scheme.
“Additional time is necessary to complete the corresponding system configurations and operational adjustments to properly reflect the revised surge pricing cap, and to ensure adequate information dissemination to all affected drivers and other stakeholders on the combined effects of the said pricing adjustments,” Mendoza said, citing the recently issued Board Resolution extending the implementation to December 20.
The surge pricing cap adjustment stems from Memorandum Circular No. 2025-056, which ordered a reduction in surge pricing for Transport Network Vehicle Service (TNVS) operations. The policy was introduced following long-standing complaints from passengers and commuter groups who described surge fares as unreasonable over the past few years.
Grab Philippines, in a letter to the LTFRB, explained that the brief adjustment period is needed to allow proper consultation with its driver-partners. The company said this includes issuing platform advisories and conducting thorough orientations to ensure drivers fully understand the revised computation and application of surge pricing.
“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.
Despite the delay, Mendoza clarified that the extension does not mean the policy has been modified or repealed. He stressed that the LTFRB’s decision on the surge pricing cap remains in effect until January 4 next year.
He also said the LTFRB Resolution directs TNCs to complete all system programming, algorithm adjustments, and information dissemination to ensure full compliance once the revised surge pricing cap officially takes effect.
Dec 17, 2025
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