Manila: The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday issued a memorandum penalizing driver-initiated cancellation of transport network vehicle service (TNVS) bookings. In a statement, LTFRB Chair Vigor Mendoza II said the memorandum circular (MC) is in line with President Ferdinand R. Marcos Jr.'s instruction to prioritize the welfare of commuters.
According to Philippines News Agency, the memorandum seeks to address the complaints of commuters about the rampant cancellations of bookings by TNVS drivers, especially in areas with heavy traffic. Under LTFRB MC 2025-055, booking cancellations initiated by TNVS drivers are classified as a violation under 'Refusal to Convey Passengers' penalized under Section IV. 2 of Joint Administrative Order 2014-01.
The penalties for its violation are a fine of PHP5,000 for the first offense, PHP10,000 fine and 30-day vehicle impoundment for the second offense, and a fine of PHP15,000 and cancellation of the Certificate of Public Convenience for subsequent offenses. Mendoza noted that cancellation of bookings is tantamount to refusal to convey passengers, especially when the booking has already been accepted and confirmed in the TNVS platform.
The memorandum also penalizes cancellations made to avoid short-distance or non-profitable trips, discrimination against senior citizens and persons with disabilities, and patterns of unjust cancellations. The LTFRB will use transport network companies' (TNC) logs to determine if there is deliberate refusal to serve certain areas, time periods, or passenger profiles without just cause.
Additionally, TNCs are required to submit a monthly report categorizing cancellations by driver-initiated, passenger-initiated, and system-initiated, along with a list of drivers with unjustified cancellations and corresponding actions taken. Exceptions to these penalized cancellations include natural calamities, car maintenance issues, and passenger behavior.
The MC also includes penalties for TNCs failing to monitor, control, and take corrective actions against drivers with a history of unjustified cancellations or failing to comply with reporting and data-sharing obligations, which include fines, suspension, or cancellation of accreditation. The MC will take effect immediately after its publication in at least one newspaper with general circulation.
