The Land Transportation Franchising and Regulatory Board (LTFRB) in the Philippines has issued a memorandum capping the booking and platform fees for app-based taxis at a maximum of ₱60 to ensure transparency and fairness for passengers.
The Philippines’ Land Transportation Franchising and Regulatory Board (LTFRB) has introduced a new regulation to limit the booking and platform fees charged by taxi services operating on digital platforms. According to Memorandum Circular 2026-055, approved recently, taxis using ride-hailing applications can only impose booking fees up to 20% of the approved fare or a maximum of ₱60, whichever is lower. The memorandum explicitly prohibits additional charges such as convenience fees, service fees, platform surcharges, or other similar fees beyond the authorized amount unless prior Board approval is obtained. The LTFRB emphasized that taxi operators must transparently disclose all fare components before booking. This regulation aims to address passenger complaints and inquiries concerning unauthorized or unclear fees, which arose due to previous lack of clear guidelines for taxis using online platforms. LTFRB Chairman Vigor Mendoza stated that the memorandum covers all taxi units operating via online platforms and warned of administrative sanctions including fines, suspension, or cancellation of franchises for non-compliance. The rule will take effect following its publication in widely circulated newspapers. This move seeks to protect commuters by ensuring fair, reasonable, and transparent transportation costs in the digital taxi service sector.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/995298/ltfrb-taxi-book-fees-cap/story/
