LTFRB imposes price cap on online taxi booking fees

INCONSISTENCY ADDRESSED The Land Transportation Franchising and Regulatory Board (LTFRB) has responded to complaints from the riding public about the “unauthorized or inconsistent collection of additional charges” by app-based ride-booking platforms. File photo shows the typical rush-hour traffic on Edsa. —MARIANNE BERMUDEZ The Land Transportation Franchising and Regulatory Board (LTFRB) on Saturday said it has set a cap on taxi booking fees imposed by online or app-based platforms in response to public feedback. In a statement, the LTFRB said booking or platform fees that are paid by passengers when booking taxis will have a price cap of either P60, or 20 percent of the total approved rate, whichever is lower. The agency recently approved Memorandum Circular No. 2026-055 that establishes the new price cap following complaints and inquiries from the public regarding fees being charged by taxi operators on online bookings. Article continues after this advertisement It said the lack of a clear policy regarding these bookings has resulted in “unauthorized or inconsistent collection of additional charges.” This inconsistency has caused “confusion” among passengers and may only lead to the charging of “unreasonable” transportation costs as well as “nontransparent fare practices.” No concealment “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 circular said. “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 LTFRB, it also said. The circular also bans the “misrepresentation or concealment” of charges imposed on passengers, collection of “duplicate” or “overlapping booking-related charges,” and charging of fees that are not reflected in the approved fare structure or digital booking receipt. Article continues after this advertisement Charging passengers with “arbitrary” or “dynamically generated” booking fees without prior approval from the agency is also prohibited. “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. Article continues after this advertisement Full disclosure The agency added that booking or platform fees must also be “separately reflected and clearly disclosed in the fare computation, booking confirmation, and electronic receipt issued to the passenger.” It urged taxi operators to ensure that they “clearly disclose all fare components prior to booking confirmation and reflect all authorized charges in the electronic receipt or trip summary.” Your subscription could not be saved. Please try again. Your subscription has been successful. To allow the proper audit and inspection of fees that were collected, the LTFRB said operators will also be tasked to maintain records of all booking related-charges and submit the necessary reports or data to the agency. INQ