LTFRB to penalize TNVS drivers' booking cancellation

The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a memorandum circular imposing penalties for drivers of ride-hailing vehicles who cancel bookings without just cause and to "promote the safety, convenience and protection" of commuters.

In a statement, LTFRB Chairman Atty. Vigor D. Mendoza II said the memorandum is the agency's response to complaints on "rampant booking cancellations in areas with traffic jams, and in anticipation with the same modus for the Holiday season."

The LTFRB MC 2025-055 states that "booking cancellations initiated by the drivers of Transport Network Vehicle Service (TNVS) are classified as violation under Refusal to Convey Passengers which is penalized under Section. IV.2 of Joint Administrative Order 2014-01."

“Matindi ang epekto ng biglaan at garapalang booking cancellation sa mga TNVS dahil ang pinag-uusapan dito ay kahalagahan ng oras ng mananakay na maaring makompromiso ng ganitong modus,” said Mendoza.

(The impact of sudden and blatant booking cancellations on TNVS is severe because what is at stake here is the importance of the passenger's time, which can be compromised by this modus operandi.)

“This is also a matter of 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 (What if it also involves emergency situations and then suddenly gets canceled for no reason?),” he added.

The drivers who cancel bookings are penalized, based on the following conditions:

• when it was done to avoid short distance trips or non-profitable trips in favor of higher fare charge
• when it involves discrimination especially against senior citizens and  PWDs, and other members of vulnerable sector
• those that are already in transit without any valid reasons
• booking cancellation behavior of TNVS drivers.

Meanwhile, the penalty for the violation under Section. IV.2 of Joint Administrative Order 2014-01 are:

• 1st Offense - fine of P5,000.00
• 2nd Offense- fine of P10,000.00 and impounding of unit for thirty (30) days
• 3rd and subsequent Offenses - fine of P15,000.00 and cancellation of CPC where the unit is authorized

The pattern of behavior is determined after checking the log systems of the Transport Network Companies (TNCs) and these show "deliberate refusal to serve certain areas, time periods, or passenger profiles without just cause."

In addition, TNCs are required to submit a monthly record of cancelled bookings based on whether these are driver-initiated, passenger-initiated, or system-initiated.

The companies are also required to submit a list of drivers with unjustified cancellations and corresponding actions taken.

TNCs may also be penalized for the following reasons: failure to monitor, control, and take corrective action against identified drivers with repeated unjustified cancellations, or that fail to comply with reporting and data-sharing obligations.

The penalties include imposition of fines, suspension, or cancellation of accreditation.

Some of the exceptions include natural calamities like flood, car maintenance issues and passenger behavior.

"The memorandum will take effect immediately after its publication to at least one newspaper with general circulation."  — BAP, GMA Integrated News