The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a new memorandum penalizing Transport Network Vehicle Service (TNVS) drivers who cancel bookings without a valid reason, following President Ferdinand Marcos Jr.’s directive to safeguard commuter welfare. The policy, LTFRB Memorandum Circular 2025-055, was signed on December 11.
LTFRB Chairman Atty. Vigor Mendoza II said the move responds to “the numerous complaints of commuters about the rampant booking cancellations in areas with traffic jams,” especially with the expected surge of riders during the holiday season. Under the order, driver-initiated cancellations are now treated as Refusal to Convey Passengers, a violation punishable under Joint Administrative Order 2014-01.
The penalties are as follows:
• 1st offense: ₱5,000 fine
• 2nd offense: ₱10,000 fine and 30-day impoundment
• 3rd offense and beyond: ₱15,000 fine and cancellation of the vehicle’s CPC
Mendoza stressed the impact of unjustified cancellations, stating: “Matindi ang epekto ng biglaan at garapalang booking cancellation… dahil ang pinag-uusapan dito ay kahalagahan ng oras ng mananakay.” He added that sudden cancellations jeopardize both convenience and safety, especially in potential emergency situations.
The memorandum also penalizes cancellations done to avoid short trips, low fares, or passengers from vulnerable sectors such as seniors and PWDs. Patterns of discriminatory or profit-driven behavior will be identified through TNVS log systems, with Transport Network Companies required to submit monthly reports detailing driver-initiated cancellations and actions taken.
Exceptions such as natural calamities, mechanical issues, and problematic passenger behavior are recognized. TNCs that fail to monitor and address repeated violations may face fines, suspension, or cancellation of accreditation.
The order takes effect immediately upon publication in a newspaper of general circulation.
