The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday issued a memorandum circular penalizing booking cancellations initiated by drivers of ride-hailing vehicles.

LTFRB Chairman Atty. Vigor D. Mendoza II said the resolution responds to numerous complaints from commuters about rampant booking cancellations, particularly in traffic-heavy areas and in anticipation of similar incidents during the holiday season.

Under LTFRB Memorandum Circular 2025-055, signed on 11 December, cancellations made by Transport Network Vehicle Service (TNVS) drivers are classified as a violation under “Refusal to Convey Passengers,” as provided in Section IV.2 of Joint Administrative Order 2014-01.

The penalties include a P5,000 fine for the first offense; a P10,000 fine and a 30-day impoundment of the vehicle for the second offense; and a P15,000 fine along with cancellation of the Certificate of Public Convenience (CPC) for the third and subsequent offenses.

Mendoza emphasized that the LTFRB is mandated to promote commuter safety and convenience. He explained that once a driver accepts and confirms a booking in the ride-hailing platform, canceling without valid reason is tantamount to refusing a passenger.

“Matindi ang epekto ng biglaan at garapalang booking cancellation sa mga TNVS dahil ang pinag-uusapan dito ay kahalagahan ng oras ng mananakay na maaaring makompromiso ng ganitong modus,” Mendoza said. He added that these situations also compromise passenger welfare, especially in emergencies, when a sudden cancellation can leave commuters stranded.

The memorandum identifies several instances that constitute unjustified cancellations, including avoiding short-distance or less profitable trips; discriminating against senior citizens, persons with disabilities and other vulnerable passengers; abandoning passengers already in transit without valid reason; and patterns of behavior that show a deliberate refusal to serve certain areas, peak hours, or passenger types.

Mendoza noted that these patterns can be detected through the log systems of Transport Network Companies (TNCs). Because of this, the LTFRB has directed TNCs to submit monthly reports detailing driver-initiated, passenger-initiated, and system-initiated cancellations, as well as lists of drivers with unjustified cancellations and the corresponding actions taken.

The memorandum also outlines exceptions to the violation, which include natural calamities such as flooding, legitimate vehicle maintenance issues, and valid concerns related to passenger behavior.

In addition, TNCs may also face penalties if they fail to monitor, control, or take corrective action against drivers with repeated unjustified cancellations, or if they fail to comply with reporting and data-sharing requirements. Possible sanctions include fines, suspension, or cancellation of accreditation.

The directive takes effect immediately upon publication in a newspaper of general circulation.

The LTFRB stated that the policy aligns with President Ferdinand “Bongbong” R. Marcos Jr.’s instruction to safeguard commuter welfare, guided by Transportation Secretary Giovanni Z. Lopez.