MANILA - The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday ordered Grab to reduce its surge pricing rate while the agency processed the accreditation of new players in the ride-hailing market.

Grab used to be allowed to charge twice its normal fares, called surge pricing, when ride demand is high. But the LTFRB told the company during a hearing this afternoon to bring this down to just 1.5 times the normal rate.

The LTFRB said the lower Grab surge rates take effect immediately.

Uber PH counsel explains to board that it has exited the market and no intention to return.

— Jacque Manabat (@jacquemanabat) April 11, 2018

The company had earlier been accused by riders of jacking up fares after acquiring Uber's business in the Philippines late March. Grab has denied this, saying that its fares have always been higher than Uber's.

• Grab denies jacking up fares, says rates always higher than Uber's

Grab also said a spike in the number of bookings led to higher fares. The company said that while the number of its drivers increased 20 to 30 percent, booking requests went up by 50 to 70 percent.

LTFRB board member Aileen Lizada earlier said the agency was seeking to fast-track the accreditation of 4 new ride-hailing firms after Uber's exit from the country. - report from Jacque Manabat, ABS-CBN News

• Regulators seek to 'fast-track' approval of new ride-sharing apps