The Land Transportation Franchising and Regulatory Board (LTFRB) has reinstated a standardized pick-up fare system for ride-hailing services to address a shortage of drivers while protecting commuters from unregulated charges.

The measure, issued under Memorandum Circular 2026-059, was signed under the guidance of Transportation Secretary Giovanni Z. Lopez.

It revives a framework first introduced under a December 2025 memorandum circular to manage surging holiday fares and driver shortages.

LTFRB chairperson Vigor Mendoza II said the revival of the program addresses long-standing complaints from Transport Network Vehicle Service (TNVS) drivers regarding heavy traffic, uncompensated fuel costs, and time spent traveling to pick up passengers.

“Our mandate covers both commuters and transport workers,” Mendoza said. “This system addresses drivers’ operational burdens while preventing excessive, unregulated fees that hurt the riding public.”

Under the new guidelines, ride-hailing platforms are strictly required to limit their driver-passenger matching radius to 5 kilometers. No pick-up fares may be imposed or collected beyond this 5-kilometer limit.

The regulatory board also ruled that the entirety of the pick-up fare must go directly to the drivers. Transport network companies are prohibited from taking commissions, service fees, or corporate shares from these specific amounts.

To ensure transparency, the platform must display the breakdown of the pick-up fare before a passenger confirms a booking, and the charge must appear as a distinct line item on electronic receipts.

The standardized pick-up rates are scaled by distance and vehicle classification up to the 5-kilometer cap:

For hatchbacks and subcompact vehicles, the fare is set at P24 for 1 kilometer, scaling up by P24 increments per kilometer to a maximum of P120 at 5 kilometers.

Sedans are priced at P26 for 1 kilometer, increasing to P52 for 2 kilometers, P78 for 3 kilometers, P104 for 4 kilometers, and P130 at the 5-kilometer limit.

Asia Utility Vehicles and Sport Utility Vehicles start at P29 for 1 kilometer, rising to P58 for 2 kilometers, P87 for 3 kilometers, P116 for 4 kilometers, and P145 for 5 kilometers.

Premium TNVS options carry a baseline rate of P58 for 1 kilometer, scaling up to P116 for 2 kilometers, P173 for 3 kilometers, P231 for 4 kilometers, and topping out at P289 for a five-kilometer radius.

The circular will officially take effect following its publication in a newspaper of general circulation.