LTFRB orders new ridesharing app Arcade City to stop operations

LTFRB considers Arcade City’s operation as colorum

As the LTFRB stood firm in suspending Uber for one month, a new ridesharing company used the opportunity to launch its mobile app to Android and Apple users in the country – Arcade City.

Launched yesterday (August 16), Arcade City is a ridesharing company based in Austin, Texas and aims to fill in the service gap left by Uber. Now totaling over 43,000 members, Arcade City has built the world’s first self-governing ridesharing network, and has provided safe, reliable city-wide transportation service in Austin for the past 15 months.

The community sets its own standards for driver vetting and other policies, which make the riders and drivers in Austin communicate directly and coordinate rides without corporate intermediary, a service Arcade City hopes to replicate in the Philippines.

With this app, drivers are free to set their own rates, build their own recurring customer base, and offer additional services like deliveries or roadside assistance. Riders can review driver profiles in advance and choose the driver they prefer.

"When 66,000 drivers are put out of a job overnight, the suffering is not felt by the corporations and bureaucrats who made the decision," said Arcade City founder & CEO Christopher David. "The suffering is felt by the stranded riders and the jobless drivers who may now have difficulty providing for their families. That is wrong — and Arcade City will do whatever we can to fix it."

After its launch yesterday, though, the Land Transportation Franchising and Regulatory Board issued an order for a cease in the operations of the new ride-sharing app.

In a statement released by the LTFRB early Thursday, the transport regulatory board said that Arcade City has not coordinated with them, and, as such, cannot operate.

The LTFRB strongly warns Arcade City to stop all the bookings made with the use of this kind of application/platform. Otherwise, they will take legal action against the new transportation network company (TNC), and will consider them as colorum.