Ride-share firms allowed to charge P50 cancellation fee

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THE Land Transportation Franchising and Regulatory Board (LTFRB) has allowed transport network companies (TNCs) to charge a cancellation or no-show fee of P50.

The cancellation charge applies to passengers who cancel their bookings more than five minutes after confirmation.

The LTFRB issued the memorandum circular governing the new fee on July 22.

The no-show charge applies if the passenger is not at the agreed pickup point within five minutes of the driver’s arrival.

The memorandum allows for valid cancellations, which will not incur fees. These include those that happen within the five-minute window, cancellations resulting from a driver being 15 minutes late based on the estimated arrival time indicated in the mobile app, and cancellations that take place when the driver falsely claims that he has arrived.

TNCs are required to arrange for prompt crediting of the charge to the driver’s e-wallet.

The memorandum allows TNCs to impose a 10% service charge of the amount collected as cancellation fees. — Arjay L. Balinbin