It is in response to the rising operational costs raised by drivers.
On Sunday, July 19, the Land Transportation Franchising and Regulatory Board (LTFRB) announced that it is reviving the LTFRB Memorandum Circular 2025-058, which sets the guidelines and fixed amounts for pick-up fare rates for Transport Network Vehicle Service (TNVS).
The said matrix was first introduced during the 2025 Christmas season to help curb incidents of unreasonable price surges on ride-hailing services, especially during rush hours.
LTFRB Chairman Atty. 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.”
Specifically, he told, it aims to address the concerns raised by the TNVS drivers and the complaints of commuters over unauthorized and unregulated pick-up charges.
Under the fare matrix, for hatchback/subcompact, the price cap is PHP24 within the 1-kilometer radius. It will double to PHP48 within the 2-km radius and increase in the same interval in the succeeding distances.
For sedan type TNVS, the rate is PHP26 starting the 1-kilometer radius, PHP52 for 2-km radius, and additional PHP26 thereafter.
AUV/SUV type TNVS, the charge within 1 kilometer radius is PHP58, with PHP29 added per kilometer (or PHP145 within the 5-kilometer radius).
For Premium TNVS, the rate is PHP58 within the 1 km radius, PHP116 within the 2km radius, PHP173 within the 3km radius, PHP231 within the 4km radius and PHP289 within the 5km radius.
“There is a need to revive the fixed Pick-Up Fares under MC No. 2025-058, which the Board previously found reasonable, in order to prevent service shortages, ensure the availability of rides across all areas, and protect the riding public from unauthorized or improvised pick-up charges,” the new Memorandum Circular under LTFRB 2026-059 read.
Specifically, it aims to address the slow travel times due to traffic problems, especially in major roads in Metro Manila including EDSA.
In reviving the pick-up fare system, the LTFRB told that it took into consideration the operational data.
In which, TNVS drivers spend significant time and fuel traveling from their booking acceptance point to passenger pick-up locations.
The exclusion of this distance component also contributes to booking problems and service shortages which eventually affects the riding public.
LTFRB Memorandum Circular 2026-059, which authorizes the revival of the pick-up fare rate prohibits charging pick-up up fare beyond the 5 kilometer radius.
“TNCs are directed to limit the matching radius to five (5) kilometers to minimize passenger waiting time and operational costs. No Pick- Up Fare beyond the five (5)-kilometer radius amounts above shall be imposed or collected,” it read.
The LTFRB also pointed out that TNCs shall not collect any share, commission, or impose a service fee derived from the Pick-Up Fare, with Mendoza emphasizing that the system eas crafted to assist drivers — with all proceed from the system going to them.
Under the same Memorandum Circular 2026-059, the LTFRB directed all TNCs to clearly and separately show the Pick-Up Fare in the breakdown displayed to the passenger prior to confirmation of the booking; inform the passenger of the total fare including the Pick-Up Fare, before acceptance of the ride; and reflect the Pick-Up Fare as a distinct line item in the electronic receipt and/ or trip summary issued to the passenger upon completion of the trip.