LTFRB Revives Fixed Pick-Up Fare Policy for Ride-Hailing Services, Sets New Fare Caps

 

LTFRB Reintroduces Fixed Pick-Up Fare Rules to Balance Driver Costs and Passenger Protection

The Land Transportation Franchising and Regulatory Board (LTFRB) has reinstated a standardized pick-up fare policy for ride-hailing services, aiming to create a fairer pricing system that addresses the financial pressures faced by transport network vehicle service (TNVS) drivers while strengthening consumer protection against excessive charges.

The renewed policy establishes fixed pick-up fare ceilings that apply within a five-kilometer radius, replacing inconsistent charging practices with a transparent and regulated framework. By setting clear limits, the LTFRB intends to eliminate uncertainty for passengers and provide drivers with a predictable compensation structure for the distance traveled before reaching their customers.

Under Memorandum Circular 2026-059, transport network companies (TNCs) are prohibited from collecting commissions or deducting service fees from the prescribed pick-up fare. The regulation also forbids companies from introducing additional charges under alternative labels such as booking fees, convenience fees, pick-up fees, or similar classifications that could effectively increase passenger costs beyond the authorized amount.

Transparency is a central feature of the revised rules. Ride-hailing platforms must display the applicable pick-up fare in the fare computation before a passenger confirms a booking. The complete trip cost, including the pick-up charge, must be disclosed in advance so commuters can make informed decisions before accepting a ride.

Once a trip is completed, the electronic receipt or trip summary must list the pick-up fare as a separate item. This requirement creates a clear record of how the total amount was calculated, making it easier for passengers to verify charges and for regulators to monitor compliance.

The approved maximum pick-up fares vary according to vehicle classification and distance traveled.

For hatchback or subcompact units, the maximum rates are set at P24 for one kilometer, P48 for two kilometers, P72 for three kilometers, P96 for four kilometers, and P120 for five kilometers.

Sedan-type TNVS vehicles may charge up to P26, P52, P78, P104, and P130 for one to five kilometers, respectively.

For AUV and SUV categories, the corresponding limits are P29, P58, P87, P116, and P145.

Premium TNVS vehicles are allowed higher caps of P58 for one kilometer, P116 for two kilometers, P173 for three kilometers, P231 for four kilometers, and P289 for five kilometers.

The policy reflects the LTFRB's effort to establish a pricing model that recognizes operational realities without sacrificing commuter welfare. Fuel expenses, vehicle maintenance, and travel time before passenger pick-up all contribute to a driver's operating costs. A regulated pick-up fare functions much like a standardized service charge, compensating drivers for resources spent before the actual trip begins while preventing arbitrary pricing.

LTFRB Chairman Vigor Mendoza II emphasized that the revived policy represents a balanced solution to competing concerns. The agency acknowledged complaints from commuters regarding unauthorized pick-up charges while also recognizing the legitimate operational challenges experienced by TNVS drivers. By introducing regulated fare limits instead of leaving rates entirely unrestricted, the LTFRB seeks to protect both parties through a transparent and enforceable system.

The reinstated rules are expected to improve fare consistency across ride-hailing platforms, reduce billing disputes, and reinforce public confidence in the country's app-based transportation services.