LTFRB imposes P60 cap on taxi app booking fees
Commuters booking taxis through online platforms will soon be protected from excessive booking fees as the Land Transportation Franchising and Regulatory Board has imposed a P60 price cap.
In a press release, the agency set the price cap for the payment of booking or platform fees in passenger taxis through Memorandum Circular 2026-055.
The memorandum allows taxis booked through digital platforms to collect a booking or platform fee equivalent to 20% of the approved fare, capped at P60. Passengers will be charged whichever amount is lower.
"No additional booking fee, convenience fee, service fee, platform surcharge, or similarly denominated charge beyond the foregoing authorized amount shall be imposed or collected without prior approval from the Board," it read.
Among the prohibitions stipulated under the memorandum include:
- Imposition or collection of unauthorized booking fees, platform fees, convenience fees, or similar charges;
- Misrepresentation or concealment of charges imposed on passengers;
- Collection of duplicate or overlapping booking-related charges;
- Charging passengers fees not reflected in the approved fare structure or digital booking receipt; and,
- Imposition of arbitrary or dynamically generated booking charges without prior LTFRB approval.
LTFRB chairman Vigor Mendoza said that the price cap is applicable uniformly to all taxi units with on-line transport platforms.
Booking or platform fees will also be separately reflected and clearly disclosed in the fare computation, booking confirmation, and electronic receipt issued to the passenger.
The agency said that the memorandum was made following complaints and inquiries from passengers regarding the fees being charged by taxi operators through online platforms.
They noted that previous fare guidelines only covered transport network vehicle services, leaving a gap in regulations for taxis that use online platforms to book passengers. This led to "unauthorized or inconsistent collection of additional charges," causing confusion among passengers and raising concerns over fare transparency.
With the new memorandum, the LTFRB urged taxi operators using online platforms to "ensure that all their digital transport platforms and operators will clearly disclose all fare components prior to booking confirmation and reflect all authorized charges in the electronic receipt or trip summary."
They are also mandated to keep records of all booking-related charges for audit and inspection purposes, and submit them to the agency should they be required.
Those who are found violating the circular will receive appropriate administrative sanctions, including "fines, suspension, cancellation of franchise, accreditation, or other penalties under existing laws, rules, and regulations."