The Land Transportation Franchising and Regulatory Board (LTFRB) has tightened its grip on ride-hailing operations by penalizing “strategic” booking cancellations, usually done by Transport Network Vehicle Service (TNVS) drivers to avoid short trips, heavy traffic, or non-profitable routes.

LTFRB Chairman Vigor D. Mendoza II issued Memorandum Circular 2025-055 on Thursday, Dec. 11, which treats driver-initiated cancellations as a violation under “Refusal to Convey Passengers” which is penalized under Section IV.2 of Joint Administrative Order 2014-01.

Joint Administrative Order 2014-01 pertains to violations of land transportation laws, rules, and regulations jointly issued by the Department of Transportation (DOTr), Land Transportation Office (LTO), and LTFRB.

Mendoza said the measure follows President Marcos Jr.’s directive to safeguard commuters, especially during the holiday rush when cancellations typically spike.

He said the new rule seeks to address widespread complaints of sudden cancellations that leave commuters stranded, especially in traffic-heavy areas. He stressed that a confirmed booking, once accepted on the platform, is already a "commitment."

However, Laban TNVS, a movement of various communities and alliances of transport network vehicle services, said the new policy came as a surprise as the matter was not discussed during recent consultations with the LTFRB.

“Two days ago, during our consultation, we talked about surge fees and cancellations involving fellow drivers. We did not discuss this particular penalty,” Laban TNVS president Jun De Leon said in Filipino in a radio interview with 105.9 True FM.

De Leon added that while TNVS drivers acknowledge that cancellations occur, most do not cancel without sufficient reason.

He also highlighted that Transport Network Companies (TNCs) already impose significant penalties on drivers who cancel bookings, including temporary suspension or restriction from accepting trips.

“Sometimes it’s better to cancel so that when the passenger rebooks, there might be a closer TNVS available in their area,” he said.

Under the new LTFRB memo, drivers face a P5,000 fine for the first offense; followed by a P10,000 fine and 30-day impoundment for the second offense; and a P15,000 fine plus cancellation of their Certificate of Public Convenience (CPC) for the third and succeeding violations.

“Matindi ang epekto ng biglaan at garapalang booking cancellation sa mga TNVS dahil ang pinag-uusapan dito ay kahalagahan ng oras ng mananakay na maaring makompromiso ng ganitong modus (Sudden and blatant booking cancellations have a serious impact on TNVS because what’s at stake here is the value of the passenger’s time which can be compromised by this kind of modus),” Mendoza said.

He pointed out that some drivers cancel trips to chase higher fares or avoid less profitable rides while others discriminate against senior citizens, persons with disabilities, and vulnerable passengers.

Patterns of refusal, such as systematically avoiding specific areas or time periods, will also be penalized.

“This is also a matter of safety and welfare of the passengers because it involves hope of convenience and all of a sudden, the booking is cancelled. What if it also involves emergency situations tapos bigla-bilang nagcancel ng walang dahilan (then they suddenly cancel for no reason at all),” Mendoza said.

In a new requirement, the LTFRB stressed that TNCs must now submit monthly reports detailing cancellation statistics including driver-initiated, passenger-initiated, and system-initiated cancellations, as well as the names of drivers with unjustified cancellations and the actions taken against them.

Failure of TNCs to monitor and discipline erring drivers, or to comply with reporting and data-sharing obligations may result in fines, suspension, or cancellation of accreditation, the agency noted.

Exceptions to the penalty include cancellations due to natural calamities, vehicle issues, or problematic passenger behavior.

The LTFRB said the memorandum will take effect immediately after its publication to at least one newspaper with general circulation.