RIDE-HAILING passengers will soon pay pick-up fees again, after the Land Transportation Franchising and Regulatory Board (LTFRB) revived a fare scheme meant to compensate drivers for the time and fuel they burn traveling to pick up their passengers.
Under Memorandum Circular 2026-059, the regulator reinstated the fixed pick-up fare rates it first rolled out in December last year, capping the charges at a 5-kilometer radius from the driver’s location.
The new circular takes effect upon publication in a newspaper of general circulation.
LTFRB Chairman Vigor D. Mendoza II said the revival responds to mounting complaints from Transport Network Vehicle Service (TNVS) drivers over rising operational costs, while addressing commuter grievances about unauthorized and unregulated pick-up charges.
‘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 fees vary by vehicle type. Hatchbacks and subcompacts may charge P24 within a one-kilometer radius, rising by P24 per kilometer up to P120 at 5 kilometers. Sedans start at P26 and top out at P130, while Asian utility vehicles and sport utility vehicles may charge up to P145. Premium units carry the highest rates, starting at P58 and reaching P289 within the 5-kilometer radius.
No pick-up fee may be imposed or collected beyond five kilometers, and transport network companies (TNCs) were directed to limit their driver-matching radius to the same distance to cut passenger waiting time and operational costs.
The regulator also barred TNCs from taking any share, commission, or service fee from the pick-up fare, with Mendoza stressing that all proceeds go to drivers. Platforms are likewise prohibited from imposing separate booking, convenience, or similarly denominated charges.
TNCs must display the pick-up fare as a distinct line item in the fare breakdown before a passenger confirms a booking, disclose the total fare before ride acceptance, and reflect the charge in the electronic receipt or trip summary after the trip.
The pick-up fare system was first implemented under Memorandum Circular 2025-058, which the board crafted after commuters complained of steep price surges during rush hours at the height of the 2025 Christmas season. It ran briefly from December until the first days of January.
The LTFRB said the same concerns have resurfaced in recent months, with operational data showing slow travel speeds along major Metro Manila roads, including Edsa, and drivers spending significant time and fuel reaching pick-up points-costs previously excluded from the fare, which the board said contributed to booking problems and ride shortages.