MANILA, Philippines — Grab has welcomed the Land Transportation Franchising and Regulatory Board’s (LTFRB) new fixed pick-up fare system, describing it as a timely compensatory adjustment and a step toward "fair and equitable compensation" for drivers. In a statement, the company said the move recognizes the extra travel time and fuel costs drivers face, particularly amid Metro Manila’s congested roads. The adjustment, to run from December 20 to January 4, offsets the temporary reduction in surge pricing during the peak holiday period. Grab said that the measure ensures drivers are fairly compensated for the realities of navigating traffic before picking up passengers. “We appreciate that the LTFRB listened to driver concerns and acted promptly,” Grab said. “This adjustment balances the temporary reduction in surge pricing while acknowledging the real costs borne by drivers in getting to their passengers.” The company also thanked the Department of Transportation for the swift action taken to address the issue. The LTFRB recently issued a memorandum circular which establishes the booking acceptance as the start of fare computation for ride-hailing services. The system includes the distance from the driver’s location to the passenger’s pick-up point as part of the chargeable fare. LTFRB Chairman Vigor Mendoza II said the system is capped within a five-kilometer radius, with fares fixed per kilometer and varying according to vehicle type—subcompact, sedan, AUV/SUV, and premium. The fixed pick-up charges will be added to the fare from pick-up to destination. Citing studies, Mendoza noted that TNVS drivers often spend significant time and fuel reaching passengers, particularly in Metro Manila, where average vehicle speeds on EDSA drop to one kilometer per hour during peak hours. He added that the system promotes equitable compensation, ensures ride availability, and prohibits Transport Network Companies from taking a share of the fixed pick-up fare. The fixed fare system follows appeals from the TNVS Community Philippines, which opposed the reduction of surge caps amid holiday congestion. Grab reaffirmed its commitment to supporting the government’s long-term, sustainable transport solutions, including improved mass public transportation, and pledged to continue advocating for policies that protect both riders and drivers.