MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a memorandum reviving the implementation of the pick-up fare system for ride-hailing services in response to the concerns raised by Transport Network Vehicle Service (TNVS) drivers on rising operational costs.
The revival of the 2025 memorandum that set the guideline and fixed amount for pick-up fare rates would serve as a middle ground between the concerns raised by the TNVS drivers and the commuters’ complaints from unauthorized and unregulated pick-up charges, LTFRB chairman Vigor Mendoza II said.
“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,” Mendoza said.
The LTFRB chief cited the need to re-implement the fixed pick-up fares memorandum, which was first crafted due to the onset of the 2025 Christmas season to prevent service shortages and ensure the availability of rides across all areas.
“This would also protect the riding public from unauthorized or improvised pick-up charges,” said Mendoza, a lawyer.
But he clarified that under the new memo, charging pick-up up fare beyond the five-kilometer radius was strictly prohibited.
The agency said that 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.
Meanwhile, the LTFRB said that for sedan type TNVS, the rate is P26 starting the 1-kilometer radius, P52, P78, P104, and P130 within the 5km radius. For AUV (Asian Utility)/SUV (Sports Utility Vehicle) 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, the latest order showed.
In reviving the pick-up fare system, Mendoza said the LTFRB 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 exclusion of this distance component contributes to booking problems and service shortages which eventually affects the riding public, he explained.
He made it clear that transportation network companies (TNCs) were prohibited from collecting any share or commission and imposing a service fee derived from the pick-up fare.
“The pick-up fare system was crafted to assist the TNVS drivers and therefore, all the proceeds of that system go to them,” Mendoza stressed.
