The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday issued a memorandum circular that penalizes booking cancellations initiated by drivers of ride-hailing vehicles.
LTFRB chief Vigor Mendoza II said they passed a resolution in response to the numerous complaints of commuters about rampant booking cancellations in areas with heavy traffic, and in anticipation of the same modus during the holiday season.
Under LTFRB MC 2025-055 signed by the Board on December 11, booking cancellations initiated by transport network vehicle service (TNVS) drivers are classified as violations under refusal to convey passengers, which is penalized under Section IV.2 of Joint Administrative Order 2014-01.
The penalties under Section IV.2 of JAO 2014-01 are: first offense – P5,000 fine; second offense – P10,000 fine and 30-day impounding; and third and subsequent offenses – P15,000 fine and cancellation of the certificate of public convenience of the authorized unit.
Mendoza said the issuance is part of the LTFRB’s mandate to promote the safety, convenience, and protection of millions of Filipino commuters.
A booking cancellation is considered equivalent to refusal to convey passengers when a TNVS driver unjustifiably cancels an accepted and confirmed booking on the digital platform, he said.
“This is also a matter of safety and welfare because it involves the expectation of convenience and suddenly the booking is cancelled. What if it involves emergency situations and the booking is cancelled without reason?” Mendoza said.
Under the memorandum, a cancellation is penalized when it is done to avoid short or non-profitable trips, in favor of higher fare charges; when it involves discrimination, especially against senior citizens, persons with disabilities, and other vulnerable groups; when done while already in transit without valid reason; or when part of a pattern of cancellation behavior.
In cases involving patterns of behavior, the LTFRB chairman said this includes a review of TNC log systems that show deliberate refusal to serve certain areas, time periods, or passenger profiles without just cause.
The memorandum provides exceptions such as natural calamities like floods, vehicle maintenance issues, and passenger behavior.
It also imposes penalties on TNCs that fail to monitor, control, or take corrective action against identified drivers with repeated unjustified cancellations, or fail to comply with reporting and data-sharing obligations. Penalties include fines, suspension, or cancellation of accreditation.
The memorandum takes effect immediately upon publication in at least one newspaper of general circulation.
Editor’s Note: This is an updated article. Originally posted with the headline: “LTFRB memo penalizes booking cancellations of TNVS drivers”
