To address mounting commuter complaints regarding inconsistent and self-regulated booking charges, the Land Transportation Franchising and Regulatory Board (LTFRB) has stepped in to implement a price ceiling on digital platform fees for passenger taxis.
LTFRB Chairman Vigor Mendoza II highlighted the critical role of public feedback mechanisms in transportation, noting that such inputs ensure passenger grievances regarding taxi booking fees are swiftly resolved.
Following a validation of these public complaints, Mendoza announced the creation of a new policy framework to govern taxi operators utilizing digital or mobile applications.
“This memo, the Memorandum Circular (MC) 2026-055, was already approved by the LTFRB and will take effect after the publication to a newspaper with general circulation,” said Mendoza.
According to the newly approved guidelines, the platform or booking fee collected from passengers via online applications is strictly capped at either 20% of the total approved fare or ₱60—whichever amount is lower. This standardized rate applies universally across all taxi units operating with online transport systems.
“Booking or platform fee shall be separately reflected and clearly disclosed in the fare computation, booking confirmation, and electronic receipt issued to the passenger,” the LTFRB memo circular read.
“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,” it added.
Balancing the Market
An agency review triggered by the complaints showed that previous regulations on booking fees only addressed pick-up rates for Transport Network Vehicle Service (TNVS) units.
Under Memorandum Circular 2025-058, TNVS pick-up rates were determined by the distance a driver traveled from accepting a booking to fetching the passenger. This rule saw brief implementation in December of last year amid concerns over surge pricing.
The LTFRB noted that the lack of explicit rules for app-based taxi bookings had triggered unauthorized and erratic charges, causing passenger confusion and threatening transparent fare systems.
“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 circular for taxi booking fee read.
The New Regulations
Mendoza clarified that the directive solely targets taxi units and operators leveraging digital platforms to facilitate passenger rides.
Under Memorandum Circular (MC) 2026-055, the following practices are strictly prohibited:
- Imposition or collection of unauthorized booking fees, platform fees, convenience fees, or similar charges;
- Misrepresentation or concealment of charges imposed on passengers;
- Collection of duplicate or overlapping booking-related charges;
- Charging passengers fees not reflected in the approved fare structure or digital booking receipt; and,
- Imposition of arbitrary or dynamically generated booking charges without prior LTFRB approval.
Taxi operators must ensure their digital platforms transparently display all fare components before a ride is confirmed and outline all approved fees on electronic receipts or trip summaries. Operators are also mandated to preserve records of booking fees for future audits and submit requested data to the regulator.
“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,” Mendoza said.