The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a memorandum penalizing driver-initiated cancellations of transport network vehicle service (TNVS) bookings.
LTFRB Chair Vigor Mendoza II said the memorandum circular (MC) aligns with President Ferdinand R. Marcos Jr.’s directive to prioritize commuter welfare.
It aims to address complaints over the frequent cancellation of bookings by TNVS drivers, particularly in high-traffic areas.
Under LTFRB MC 2025-055, cancellations initiated by drivers are considered a violation under “Refusal to Convey Passengers” as outlined in Section IV.2 of Joint Administrative Order 2014-01.
Penalties range from a P5,000 fine for the first offense, to P10,000 and 30-day vehicle impoundment for the second, and P15,000 plus cancellation of the Certificate of Public Convenience for subsequent offenses.
Mendoza stressed that cancelling a booking after it has been accepted and confirmed on the TNVS platform constitutes refusal to convey passengers.
He said the sudden and blatant cancellations of bookings seriously impact passengers by wasting their time.
The memorandum specifies that penalties apply when cancellations are made to avoid short-distance or unprofitable trips, discriminate against senior citizens or persons with disabilities, occur while a passenger is already in transit without valid reason, or form part of a recurring pattern of unjustified cancellations.
The LTFRB will use logs from transport network companies (TNCs) to determine if drivers deliberately refuse service to certain areas, time periods, or passenger profiles without cause.
TNCs are required to submit monthly reports detailing the number or percentage of cancellations, categorized as driver-, passenger-, or system-initiated, and provide a list of drivers with unjustified cancellations along with actions taken.
Exceptions to the penalty include natural disasters, vehicle maintenance issues, or passenger behavior.
The memorandum also imposes penalties on TNCs that fail to monitor, control, or take corrective measures against drivers with a history of unjustified cancellations, or that fail to comply with reporting requirements.
These penalties may include fines, suspension, or revocation of accreditation.
The memorandum circular will take effect immediately upon publication in at least one newspaper with general circulation.
