LTFRB to penalize booking cancellations by ride-hailing vehicles this holiday season
The Land Transportation Franchising and Regulatory Board has issued a memorandum circular penalizing ride-hailing app drivers for canceling bookings during the holiday rush.
In the LTFRB MC 2025-055 signed and released by the Board on Dec. 11, cancellations made by Transport Network Vehicle Service drivers are considered a violation under Refusal to Convey Passengers, which are punishable under Section IV.2 of Joint Administrative Order 2014-01.
The penalties are as follows:
- First offense: fine of P5,000
- Second offense: fine of P10,000 and impounding of the unit for 30 days
- Third and subsequent offenses: fine of P15,000 and cancellation of CPC where the unit is authorized
The cancellation will be considered a violation when it is meant to skip short or low-profit trips for higher fares, it involves discrimination against seniors, PWDs, or other vulnerable groups, it occurred while a passenger is already en route without valid cause, or when it becomes a habitual improper cancellation by TNVS drivers.
A pattern of behavior may be assessed via the log systems of the Transport Network Companies, which will show intentional refusal to serve certain areas, time periods, or passenger profiles without a valid reason.
In line with this, the memo has also ordered companies to submit a monthly report showing the number and/or percentage of cancellations categorized by: driver-initiated, passenger-initiated, system-initiated, as well as the list of drivers with unjustified cancellations and corresponding actions taken by the TNC. The penalties could include the imposition of fines, suspension, or cancellation of accreditation.
LTFRB Chairman Atty. Vigor D. Mendoza II said the Resolution was issued after numerous commuter complaints about widespread booking cancellations in traffic-congested areas, which they aim to prevent during the holiday season.
“Matindi ang epekto ng biglaan at garapalang bookng cancellation sa mga TNVS dahil ang pinag-uusapan dito ay kahalagahan ng oras ng mananakay na maaring makompromiso ng ganitong modus,” said Mendoza.
He added that this move is part of the agency's mandate to promote the safety, convenience, and protection of Filipino commuters.
“This is also a matter of the safety and welfare of the passengers because it involves hope of convenience and all of a sudden, the booking is cancelled. What if it also involves emergency situations tapos bigla-bilang cancel ng walang dahilan,” he added.
The memorandum, per the LTFRB, is expected to take effect immediately after its release of the memo.
