Metro Manila, Philippines – Regulators have ordered a temporary reduction on the additional rate ride-hailing services or transport network vehicle service (TNVS) may charge commuters during the Christmas holiday rush.
The Land Transportation Franchising and Regulatory Board (LTFRB) announced on Friday, Dec. 12, that it issued Memorandum Circular 2025-056 on the computation for the surge price.
The adjustment will be from Dec. 17 to Jan. 4.
“We heard the complaints and we also feel the sentiments raised by those in the TNVS sector that is why we immediately acted on this in response to the instruction of President Marcos and Secretary Lopez to come up with the guideline on the computation of TNVS fares,” LTFRB Chairperson Vigor Mendoza said.
The LTFRB said that the 2019 memorandum circular on the TNVS fare matrix states that the surge price must not be more than twice the base fare.
The surge pricing must not exceed the B+C (per kilometer rate + per minute travel time) TNVS Fare Matrix.
For a sedan TNVS, the current flagdown rate is P45, a per kilometer rate of P15, and a per minute travel time rate of P2.
If the TNVS traveled five kilometers in 10 minutes, the passenger will pay P75 for the per kilometer rate, P20 for the 10-minute travel time, and P45 for the flag down rate.
The LTFRB said the price surge must not exceed P95 in this example.
“The TNCs (transportation network companies) shall not collect any share, commission, or impose a service fee derived from the surge price component of the TNVS fare during the implementation of this Memorandum Circular,” read the memorandum circular.
Going offline
A group which calls itself TNVS Community Philippines expressed concern on the new memorandum circular, and said that the surge pricing or dynamic pricing is part of the regulatory guidelines in the TNVS fare matrix based on fluctuating demand, traffic condition, pick-up distance, and operating costs.
“Ang biglaang pagbawas nito, lalo na ngayong holidays, ay direktang tatama sa kita naming mga nasa kalsada, sa gitna ng matinding traffic at mataas na presyo ng gas,” said Lisza Buscaino-Redulla, the group representative.
[Translation: The sudden reduction, especially during the holidays, will affect our profit amid heavy traffic and high gas prices.]
“Kapag binawasan ito sa panahon ng peak demand, mas maraming driver ang mapipilitang mag-offline sa high-demand hours dahil hindi na sulit ang oras, pagod, at gastos,” she said.
[Translation: When the surge pricing is reduced during peak demand, more drivers will be forced to go offline during high-demand hours because the fares are no longer worth the time, fatigue, and expenses.]
Buscaino-Redulla also asked the LTFRB regarding the status of the “compensatory adjustments,” including the potential hike of pick-up fares, which she said were mentioned by the board when it met with stakeholders to discuss the memorandum circular.
“Handa kaming makipag-usap at makipagtulungan, pero sana ang anumang mga pagbabago sa pamasahe ay dumaan sa malinaw na konsultasyon at magbunga ng patas na solusyon para sa lahat,” she said.
[Translation: We are ready to talk and collaborate, but we hope any change in the fares will go through clear consultation resulting in fair solutions for all.]
The LTFRB has directed the TNVS and the TNCs to reconfigure their fare computation algorithm on or before Dec. 17.
