LTFRB caps app-booked taxi fees at P60

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has capped the booking or platform fees charged by app-based taxis at 20% of the approved fare or P60, whichever is lower, amid complaints over inconsistent charges imposed on passengers.

In a statement posted on its official Facebook page on Saturday, July 18, the LTFRB said it had approved Memorandum Circular 2026-055, which sets the maximum booking or platform fee that may be charged to passengers using digital or online taxi booking platforms.

LTFRB Chairperson Vigor Mendoza said the policy establishes uniform guidelines for taxi operators using digital booking platforms as more commuters turn to app-based transport services.

Under the circular, booking or platform fees must be separately reflected in the fare computation, booking confirmation and electronic receipt issued to passengers.

“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 circular read.

The LTFRB said it crafted the guidelines following reports, complaints and inquiries about the booking fees charged by taxi operators using online platforms.

It noted that while the agency previously regulated pickup fares for transport network vehicle service (TNVS) operators through Memorandum Circular 2025-058, there had been no policy specifically governing booking fees for app-booked taxis.

According to the LTFRB, the absence of clear rules resulted in unauthorized or inconsistent charges that confused passengers and could lead to unreasonable transportation costs.

“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 stated.

The policy covers only taxi operators and units using digital or app-based booking platforms.

It also prohibits the collection of unauthorized booking, platform or convenience fees, duplicate booking-related charges and fees not reflected in the approved fare structure or electronic receipt. Operators are likewise barred from imposing arbitrary or dynamically generated booking charges without prior approval from the LTFRB.

The agency directed operators and platform providers to clearly disclose all fare components before passengers confirm their bookings, reflect all authorized charges in electronic receipts or trip summaries, and maintain records of booking-related charges for audit and inspection.

The LTFRB warned that operators, platform providers or drivers found violating the circular may face administrative sanctions, including fines, suspension or cancellation of their franchise or accreditation, as well as other penalties under existing laws and regulations.

The circular will take effect after its publication in a newspaper of general circulation.