LTFRB caps booking fees of app-based taxis at P60 max

The Land Transportation Franchising and Regulatory Board (LTFRB) has set a maximum P60-cap on the booking and platform fees of passenger taxis on digital platforms.

In a press statement on Saturday, the LTFRB said it has approved Memorandum Circular (MC) 2026-055, which provides that the authorized booking or platform fee that taxis can collect through digital or online platforms shall be 20% of the approved rate, or up to P60. The lower fee will be followed.

"No additional booking fee, convenience fee, service fee, platform surcharge, or similarly denominated charge beyond the foregoing authorized amount shall be imposed or collected without prior approval from the Board," the MC read.

The MC prohibits the imposition of unauthorized booking fees or similar charges, misrepresentation of charges, collection of overlapping booking-related charges, charging passengers fees not reflected in the receipt, and more.

Taxi operators must disclose all fare components prior to booking, the LTFRB said.

The MC will take effect following its publication in a newspaper with general circulation.

The policy was updated, the agency said, following reports—mostly complaints and inquiries—regarding fees being charged by taxi operators that use online platforms to book passengers.

A review of the older MC 2025-058, which provided the fare guidelines for transport network vehicle services, found that there was a lack of clear rules for taxis that used online platforms.

The LTFRB said this resulted in unauthorized or inconsistent collection of additional charges for taxi passengers.

"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 new MC read.

LTFRB chairman Vigor Mendoza said the new memorandum is applicable to all taxi units on online platforms.

"Any operator, platform provider, or driver found violating the provisions of this Circular shall be subject to the appropriate administrative sanctions, including fines, suspension, cancellation of franchise, accreditation, or other penalties under existing laws, rules, and regulations," the LTFRB said. — VDV, GMA News