For those who don’t have a “coding car,” or a spare vehicle to use when their primary car is covered by the Number Coding Scheme, or simply someone who relies on ride-hailing apps to get around, you may soon notice some changes to your fare breakdown.

The Land Transportation Franchising and Regulatory Board (LTFRB) has issued two memorandum circulars that regulate the additional charges imposed by app-booked taxis and Transport Network Vehicle Services (TNVS). The goal is to standardize these fees while addressing concerns from both commuters and drivers.

The first, Memorandum Circular 2026-055, puts a cap on the booking or platform fee charged by taxis using digital booking platforms. Under the new rule, the booking fee can only be 20% of the approved taxi fare or PHP 60, whichever is lower. For example, if your metered fare is PHP 200, the booking fee can only be PHP 40. If your fare reaches PHP 500, the booking fee would normally be PHP 100, but the maximum that can be charged is capped at PHP 60.

The booking fee must be displayed separately from the metered fare before you confirm your ride and reflected on your electronic receipt.

The LTFRB also barred operators from collecting additional convenience fees, service fees, platform surcharges, or similar charges unless specifically approved by the Board. The agency said the new policy was prompted by complaints about inconsistent and unauthorized fees imposed by app-booked taxis.

Meanwhile, Memorandum Circular 2026-059 revives the fixed pick-up fare for TNVS.

Unlike the booking fee, the pick-up fare compensates drivers for the distance they travel after accepting a booking until they reach the passenger. The amount varies depending on the vehicle type and the distance between the driver and the passenger, with charges capped within a 5-kilometer radius.

For example, a sedan driver can collect PHP 26 for a one-kilometer pick-up and up to PHP 130 for five kilometers. No pick-up fare may be charged beyond that distance.

The LTFRB said the policy was first introduced during the 2025 holiday season and is now being revived after finding that heavy traffic continues to increase drivers’ travel time and fuel costs before a trip even begins.

To improve transparency, transport network companies (TNCs) must display the pick-up fare separately before passengers confirm their booking and list it as a separate item on the electronic receipt. The LTFRB also clarified that the entire pick-up fare goes to the driver, with TNCs prohibited from taking a commission or imposing additional booking, convenience, or service fees on top of the authorized charges.

The LTFRB says the two policies are meant to strike a balance between protecting commuters and ensuring drivers are fairly compensated. For passengers, are these changes a fairer, more transparent system? Or simply another cost added to every ride?