The Land Transportation Franchising and Regulatory Board’s (LTFRB) fixed pick-up fare system is set to help improve ride availability and reliability for passengers while ensuring fair pay for drivers during the holiday rush.

In a statement on Thursday, Grab Philippines said the move addresses long-standing issues faced by drivers, which also affect service for riders, especially amid heavy traffic and reduced surge pricing.

“From the outset, Grab raised the issue of uncompensated travel time and fuel costs incurred by drivers even before passenger pick-up, especially amid heavy holiday traffic,” Grab said.

Grab said resolving these costs helps keep more drivers on the road, benefiting passengers seeking rides during peak periods.

“We did so to ensure that the realities faced by our driver-partners were fully understood and addressed,” the company said.

The ride-hailing firm thanked regulators for acting on these concerns.

“We appreciate that the LTFRB listened to these concerns and acted on them through the implementation of a fixed pick-up fare system,” Grab said.

According to the company, the measure “helps balance the temporary reduction in surge pricing while recognizing the real costs borne by drivers in getting to their passengers,” calling it “an important step in ensuring fair and equitable compensation for the work our driver-partners do every day.”

Grab said it will continue to work with government on transport policies that protect both riders and drivers.