Grab welcomes LTFRB's fixed pick-up fare system during holiday season

Transport network company (TNC) Grab Philippines on Thursday welcomed the Land Transportation Franchising and Regulatory Board’s (LTFRB) move to implement a fixed pick-up fare system for ride-hailing services during the peak of the holiday season.

“Grab extends its gratitude to the Land Transportation Franchising and Regulatory Board and the Department of Transportation for being responsive and sensitive to the concerns raised by TNVS drivers, particularly with regard to the reduction in surge rates during this holiday season,” the ride-hailing service firm said.

Under LTFRB Memorandum Circular 2025-058, the distance traveled by a driver from the point of booking acceptance to the passenger’s pick-up location will be included in the chargeable per-kilometer fare. The pick-up fare, however, will be limited to a maximum radius of five kilometers and will be computed at a fixed rate per kilometer.

The new fare scheme will take effect on December 20, the same day the LTFRB implements a separate memorandum reducing the surge pricing cap for TNVS by 50%. Both measures will be in force until January 4, 2026.

“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,” the TNC said.

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

The ride-hailing firm said it welcomes the LTFRB’s “measured approach” as it helps balance the temporary reduction in surge pricing while recognizing the real costs borne by drivers in getting to their passengers. 

“This is an important step in ensuring fair and equitable compensation for the work our driver-partners do every day,” it said.

“Grab remains a committed partner of the government and fully supports efforts to develop long-term, sustainable transport solutions, including improved mass public transportation systems, which we believe are the best solution to the country’s transport challenges. We will continue to engage government constructively to advocate for policies that protect both riders and the driver-partners who keep our system moving,” it added. –NB, GMA Integrated News