LTFRB caps booking fees for app-based taxi services

MANILA, Philippines -- The Land Transportation Franchising and Regulatory Board (LTFRB) has approved a new policy capping the booking or platform fees that may be charged by app-based taxi services, setting the maximum at 20 percent of the approved taxi fare or P60, whichever is lower.The policy is contained in Memorandum Circular (MC) 2026-055, which was approved by the LTFRB and would take effect after its publication in a newspaper of general circulation.LTFRB Chairman Vigor Mendoza said the circular established uniform rules for taxi operators using digital or online booking platforms following complaints and inquiries about additional charges imposed on passengers.Under the circular, the authorized booking or platform fee will apply uniformly to all taxi units using online transport platforms. The fee must be separately reflected and clearly disclosed in the fare computation, booking confirmation, and electronic receipt issued to passengers.The circular also prohibits the collection of any booking fee, convenience fee, service fee, platform surcharge, or similarly named charge beyond the authorized amount without prior approval from the LTFRB.According to the LTFRB, the new policy was issued after it found that the lack of specific rules governing app-based taxi booking fees resulted in inconsistent and unauthorized charges, causing confusion among passengers and increasing transportation costs.'There is a need to establish clear and uniform rules governing the imposition, computation, disclosure, and collection of booking or platform fees in order to ensure transparency, protect the riding public, and maintain fair and reasonable transportation charges,' the circular stated.The circular applies only to taxi units and operators that facilitate passenger transport through digital or app-based booking platforms.Among the prohibited acts are imposing unauthorized booking or platform fees, concealing charges from passengers, collecting duplicate booking-related fees, charging fees not reflected in the approved fare structure or electronic receipt, and imposing arbitrary or dynamically generated booking charges without prior LTFRB approval.The LTFRB also directed operators and platform providers to clearly disclose all fare components before a booking is confirmed, reflect all authorized charges in electronic receipts or trip summaries, maintain records of booking-related charges for inspection, and submit reports required by the agency.Violators may face administrative sanctions, including fines, suspension or cancellation of franchises or accreditations, and other penalties under existing laws and regulations.The LTFRB said the circular was issued under the guidance of Transportation Secretary Giovanni Lopez.