The transport department will on Wednesday publicly issue the new country-wide guidelines for the likes of Uber and GrabTaxi, a spokeswoman said, in a bid to promote better transport services.
Ride-sharing services -- typically Internet and mobile app-based alternatives to traditional taxis -- are gaining popularity in the Philippine capital Manila, notorious for creaking train systems, decrepit buses and traffic jams.
The new framework makes the Philippines the first country to have nationwide rules on ride-sharing, according to both the Philippine transport department and Uber. Previously, only local and city governments have regulated the services.
Previously the drivers did not have to pay a franchise fee or to register.
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"We view technological innovation as a driver for progress, especially in transportation where it can provide safer and more convenient commuting options to the public," Transport Secretary Joseph Abaya said in a statement.
Internet and mobile-phone-based ride-sharing services like Uber have come under attack in the Philippines and other countries.
Abaya said that recognising the new firms would compel traditional transport companies to modernise, innovate and be more competitive.
"At the end of the day, when there's competition, there's better services for people," he said.
In a statement, Uber senior vice-president David Plouffe hailed the Philippine action, which he said would "advance urban mobility, create new economic opportunity and put rider safety first".