AUTO INDUSTRY NEWS

LTFRB orders new ride sharing company Arcade City to stop operations

LTFRB orders new ride sharing company Arcade City to stop operations image

Marcus De Guzman / Arcade City | August 17, 2017 11:18

US-based ride sharing service Arcade City operating as 'colorum' – LTFRB

With Uber operations halted for one month, there is now an even greater demand for ride sharing services. A new player by the name of 'Arcade City' decided now is the best time to launch its services in the Philippines.

Recently, Arcade City announced on its Facebook page that they are now recruiting and activating drivers amidst Uber's one-month suspension. In a statement, the company said that Uber's withdrawal meant there were at least 66,000 drivers left without a job and thousands of stranded commuters as well.

But the Land Transportation Franchising and Regulatory Board (LTFRB) has already ordered Arcade City to halt its operations. According to the government agency, the US-based ride sharing service could have engaged in 'colorum' operations.

“Arcade City is not authorized to operate as a TNC as they were not accredited by the LTFRB. Their transport network vehicle services (TNVS) are colorum,” said Aileen Lizada, LTFRB board member and spokesperson.

In addition, Lizada said that Arcade City has yet to file any application to the LTFRB and has not coordinated with the Board. If Arcade City continues to operate, the LTFRB will take legal actions against the said ride sharing company.

Compared to Uber, Arcade City operates with a peer-to-peer model of ridesharing. This allows drivers to build and maintain their own transportation business like an entrepreneur, instead of being directly governed by a corporate body. Moreover, drivers are free to set their own rates, build on their customer base and offer additional services like deliveries or roadside assistance.

On the other hand, riders can select their drivers beforehand and review them before booking a ride.