LTFRB revives fixed TNVS pick-up rate amid cost concerns

The Land Transportation Franchising and Regulatory Board (LTFRB) has revived fixed pickup fares for transport network vehicle service (TNVS) units, aiming to balance commuter welfare with the operational needs of ride-hailing providers. The decision, announced on Sunday, marks the reinstatement of Memorandum Circular (MC) 2025-058 under the new designation MC 2026-059. This move comes as part of ongoing efforts to address concerns over unauthorized fees and service disruptions in Metro Manila. The revival of the fixed pickup rate was prompted by reports of inconsistent billing practices and rising operational costs among TNVS operators. According to LTFRB Chairperson Vigor Mendoza II, the policy serves as a compromise between the interests of commuters and transport network companies (TNCs). “While commuters’ welfare is a priority, part of our mandate is also to ensure that the concerns of those in the public transportation sector are heard,” he explained in a press statement. The circular was initially introduced in December 2025 and remained in effect until January 4, 2026, during the holiday season. Its reintroduction follows a period of regulatory review and stakeholder consultations. Under the revived policy, TNCs are required to apply fixed pickup fare rates based on vehicle type and distance. For hatchback or subcompact vehicles, the rates range from P24 for a one-kilometer radius to P120 for a five-kilometer radius. Sedans have similar structured pricing, starting at P26 for one kilometer and increasing to P130 for five kilometers. AUVs or SUVs follow a slightly different scale, beginning at P29 for one kilometer and reaching P145 for five kilometers. These rates were established to standardize charges and prevent arbitrary surcharges during pickups. The LTFRB emphasized that the revival of the fixed pickup rate is intended to prevent service shortages and ensure the availability of rides across all areas. The board cited concerns over the impact of variable pricing models on driver availability and passenger trust. By setting clear boundaries on how far pickup fares can extend, the agency hopes to reduce instances of improvisation and unauthorized charges. Additionally, the directive mandates that TNCs limit their matching radius to five kilometers, thereby minimizing wait times and reducing operational expenses. To enforce transparency, the circular requires TNCs to clearly display the pickup fare in the fare breakdown before a ride is confirmed. Passengers must be informed of the total fare, including the pickup component, prior to accepting the booking. Furthermore, the pickup fare must appear as a separate line item on the electronic receipt or trip summary provided at the end of the journey. These measures aim to enhance consumer awareness and accountability within the ride-hailing industry. The decision reflects broader regulatory trends aimed at curbing exploitative practices while supporting sustainable operations. Earlier this year, the LTFRB had already imposed a price cap on online taxi booking fees, signaling its commitment to regulating the sector more strictly. The current revival of fixed pickup rates aligns with these efforts, reinforcing a framework that prioritizes fairness and reliability for both users and service providers. As the new guidelines take effect, the focus will shift toward monitoring compliance and addressing any emerging issues. The LTFRB has indicated that it will continue engaging with stakeholders, including TNCs, drivers, and commuters, to refine policies as needed. With the city's reliance on ride-hailing services growing, the effectiveness of these measures will likely become a key topic of discussion in the coming weeks.