TNVS opposes LTFRB’s holiday surge pricing cap

A major organization representing ride-hailing services in the Philippines has voiced strong opposition to a new government memorandum circular that lowers the cap on surge pricing during the holiday season, a time of peak commuter demand and heavy traffic.

The TNVS Community Philippines, through spokesperson Lisza Redulla, released a statement arguing that dynamic or surge pricing is a core component of the transportation network vehicle service (TNVS) fare structure.

They say it accurately reflects the realities of on-demand transport, including fluctuating demand, traffic conditions, pickup distances, and varying operating costs throughout the day.

The group warned that the abrupt reduction of the surge cap directly threatens drivers’ earnings at a time when fuel prices are elevated and road congestion is at its worst. They stressed that surge fees act as a mechanism to ensure fair compensation when trips become longer and more difficult due to traffic and peak-hour demand.

TNVS Community Philippines argued that lowering surge rates during high-demand periods could prompt more drivers to log off, as the reduced pay would no longer justify the time, effort, and operating cost. They contend this action would ultimately make it harder for commuters to book rides during peak hours.

The group also recalled that the Land Transportation Franchising and Regulatory Board (LTFRB) previously met with TNVS representatives and discussed potential "compensatory adjustments," including a possible increase in base pickup fares.

"We are just asking -- where is that now?" the community asked, referring to the promised adjustments.

The drivers appealed for fairness.

"Being fair shouldn't only be for the commuter. It must also be fair for the drivers who fight on the streets every day. We are ready to communicate and cooperate, but we hope any changes to the fare structure pass through clear consultation and result in a fair solution for everyone," said the group.