Oppressive rates of TNVS rides
The challenges to commuting in the Philippines are endless, so it is only right for the government to step in and implement measures to ease the burden of commuters, this time for those who use transport network vehicle services (TNVS), more commonly known as ride-hailing services.
This week, the Land Transportation Franchising and Regulatory Board (LTFRB) issued two memorandum circulars: the first penalizing TNVS drivers who cancel bookings without a valid reason, and the second imposing a temporary adjustment and reduction in surge pricing from Dec. 17, 2025, to Jan. 4, 2026.
These moves were in response to public complaints about unjustified booking cancellations and excessive fares resulting from surge pricing, especially during the holiday season.
When these ride-hailing services were first introduced in the country—GrabTaxi launched in July 2013 and Uber in early 2014—they offered a relatively affordable and convenient option for commuters who had for the longest time borne the brunt of a broken public transport system that severely suffers from the lack of reliable connectivity. These on-demand transport services also became a crucial alternative to the often dehumanizing commute, where commuters must navigate poor and unsafe road networks and make do with unreliable public transport daily, affecting their productivity and quality of life.
Not a panacea
Even until today, commuters must still deal with trains, buses, and jeepneys that operate beyond capacity, especially during rush hours—with long queues at the MRT stations, bus stops, and along the roads a common sight. Taxi drivers are still notorious for refusing passengers, overcharging them, or refusing to use the meter. Indeed, the advent of ride-hailing services, from cars to motorcycles, has filled, and continues to fill, the gap in point-to-point mobility where traditional transport has failed, and helped address the transportation shortage.
Sedans and SUVs booked through digital apps offer convenience, safety, and are relatively worry-free: passengers do not have to worry about cunning drivers and faulty meters because they are already made aware of how much they will be charged and the estimated time for the trip from the moment they book. Motorcycle taxis also offer speed and even more affordable rates.
But TNVS are obviously not a panacea for the country’s transportation problem—and critics have pointed out that they only add to the traffic jams and their charges have become so oppressive that not everybody, certainly not daily wage earners, can afford them.
Cap on surge pricing
A check on a trip from SM North Edsa in Quezon City to Ninoy Aquino International Airport Terminal 1 in Parañaque during evening rush hour, for example, showed that it costs more than P1,200 for an approximately 28-kilometer distance. Even short distances can be expensive, and yet, some drivers would still cancel, preferring longer trips that would pay more. These issues with booking cancellations and surge pricing have only further highlighted the cons of such services.
In fact, the issue over surge pricing is not new and has already emerged in 2016 when LTFRB issued a directive to Grab and Uber—which faced temporary suspensions in 2017 due to regulatory issues and eventually stopped operations in the country in 2018 after selling its Southeast Asian business to Grab. Both companies complied, but there was a lack of transparency on the limits they imposed. In 2017, TNVS drivers threatened to hold a “transport strike” in response to the cap on surge pricing and told the LTFRB that it should do its part by approving more TNVS applications.
Less car-centric
This time, the board has provided a formula that transport network companies must follow: the surge price cannot be higher than the sum of the travel distance charge and the travel time charge. The per-kilometer and per-minute rates, however, differ between hatchbacks, sedans, AUVs, SUVs, and premium vehicles and range from P13 (hatchback) to as much as P36 for premium. For example, a sedan-type with a flagdown rate of P45 will only be allowed a maximum P95 surge fee based on a P75 distance charge for 5 kilometers and a P20 time charge for 10 minutes. TNCs have also been required to make a breakdown of these charges available to passengers.
In addition, LTFRB’s updated policy, clearly stating that booking cancellations are categorized as a violation for “refusal to convey passengers,” should serve as a deterrent for TNVS drivers who abuse the option to cancel short-distance or “non-profitable” trips.
Ultimately, however, the solution is to fix the country’s road network and transportation system, make them less car-centric and more efficient, integrated, expansive, and inclusive. If and when that happens, ride-hailing services will only become an option, and not a trap for commuters looking for alternative means to reach their destinations.
