LTFRB caps booking fees for app-based taxi services
The Philippines' Land Transportation Franchising and Regulatory Board has capped booking fees for app-based taxi services at 20 percent of the fare or 60 pesos, whichever is lower. This policy aims to standardize charges and improve transparency for passengers following numerous complaints.
Why it matters
Regulatory intervention in the gig economy is a growing trend as governments seek to protect consumers from opaque pricing models used by digital platforms.
MANILA, Philippines -- The Land Transportation Franchising and Regulatory Board (LTFRB) has approved a new policy capping the booking or platform fees that may be charged by app-based taxi services, setting the maximum at 20 percent of the approved taxi fare or P60, whichever is lower.The policy is contained in Memorandum Circular (MC) 2026-055, which was approved by the LTFRB and would take effect after its publication in a newspaper of general circulation.LTFRB Chairman Vigor Mendoza said the circular established uniform rules for taxi operators using digital or online booking platforms following complaints and inquiries about additional charges imposed on passengers.Under the circular, the authorized booking or platform fee will apply uniformly to all taxi units using online transport platforms.
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