NATIONAL
Advocates Philippines
LTFRB Sets Fixed Pick-Up Fare For Ride-Hailing During Holidays
FILE
Commuters using ride-hailing apps will see a change in fare computation this holiday season as the Land Transportation Franchising and Regulatory Board (LTFRB) rolls out a fixed pick-up fare system for Transport Network Vehicle Services (TNVS).
The policy will take effect from December 20, 2025 to January 4, 2026, a period when traffic congestion is expected to peak due to Christmas and New Year travel.
According to the LTFRB, the new system allows drivers to start charging fares from the moment they accept a booking, rather than only upon reaching the passenger’s pick-up point. This means the distance traveled by the driver to reach the passenger will now be included in the fare computation.
LTFRB Board Member Atty. Greg G. Pua, Jr. explained that the interim pick-up rate is meant to recognize the real costs shouldered by TNVS drivers, including fuel consumption and time spent navigating heavy traffic before picking up passengers. At the same time, the agency said the move is designed to strike a balance between protecting commuters and ensuring fair compensation for drivers.
Under Memorandum Circular 2025-058 issued on December 17, 2025, the pick-up fare will be limited to a five-kilometer radius and will follow a fixed per-kilometer rate. Charges will vary depending on the type of vehicle used, such as subcompact, sedan, AUV/SUV, or premium units. The pick-up fare will be added on top of the regular fare from the pick-up point to the passenger’s destination.
The LTFRB clarified that the implementation of the fixed pick-up fare will coincide with the temporary reduction of the surge pricing cap by 50 percent. Both measures will be enforced for the same holiday period.
The agency cited studies and traffic data showing that drivers often spend a significant amount of time traveling to pick-up locations, especially in Metro Manila. Reports indicate that vehicle speeds on major roads like EDSA slow dramatically during rush hours, leading to longer travel times and higher operating costs for drivers.
To ensure that drivers fully benefit from the new system, the LTFRB also prohibited transport network companies from taking any share or commission from the fixed pick-up fare, similar to existing rules on surge pricing.
Under the leadership of Chairperson Atty. Vigor D. Mendoza II, and in coordination with the Department of Transportation, the LTFRB said it will continue to explore policies that are fair, practical, and responsive to the realities faced by both commuters and public transport workers.
The agency emphasized that the fixed pick-up fare is a temporary measure aimed at easing pressure on drivers while maintaining reasonable fares for passengers during the busiest travel season of the year.
The policy will take effect from December 20, 2025 to January 4, 2026, a period when traffic congestion is expected to peak due to Christmas and New Year travel.
According to the LTFRB, the new system allows drivers to start charging fares from the moment they accept a booking, rather than only upon reaching the passenger’s pick-up point. This means the distance traveled by the driver to reach the passenger will now be included in the fare computation.
LTFRB Board Member Atty. Greg G. Pua, Jr. explained that the interim pick-up rate is meant to recognize the real costs shouldered by TNVS drivers, including fuel consumption and time spent navigating heavy traffic before picking up passengers. At the same time, the agency said the move is designed to strike a balance between protecting commuters and ensuring fair compensation for drivers.
Under Memorandum Circular 2025-058 issued on December 17, 2025, the pick-up fare will be limited to a five-kilometer radius and will follow a fixed per-kilometer rate. Charges will vary depending on the type of vehicle used, such as subcompact, sedan, AUV/SUV, or premium units. The pick-up fare will be added on top of the regular fare from the pick-up point to the passenger’s destination.
The LTFRB clarified that the implementation of the fixed pick-up fare will coincide with the temporary reduction of the surge pricing cap by 50 percent. Both measures will be enforced for the same holiday period.
The agency cited studies and traffic data showing that drivers often spend a significant amount of time traveling to pick-up locations, especially in Metro Manila. Reports indicate that vehicle speeds on major roads like EDSA slow dramatically during rush hours, leading to longer travel times and higher operating costs for drivers.
To ensure that drivers fully benefit from the new system, the LTFRB also prohibited transport network companies from taking any share or commission from the fixed pick-up fare, similar to existing rules on surge pricing.
Under the leadership of Chairperson Atty. Vigor D. Mendoza II, and in coordination with the Department of Transportation, the LTFRB said it will continue to explore policies that are fair, practical, and responsive to the realities faced by both commuters and public transport workers.
The agency emphasized that the fixed pick-up fare is a temporary measure aimed at easing pressure on drivers while maintaining reasonable fares for passengers during the busiest travel season of the year.
Dec 18, 2025
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