MANILA— The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered ride sharing company Arcade City to cease operations as it may have engaged in “colorum” operations.
LTFRB board member and spokesperson Aileen Lizada said her office has not received any application from Arcade City to be considered as a transportation network company (TNC).
“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,” Lizada said in an interview with reporters.
In its advisory released Wednesday afternoon, the LTFRB said that Arcade City has not coordinated with the Board, thus, it cannot operate.
“LTFRB strongly warns Arcade City to stop all bookings made with the use of this kind of application or platform. Otherwise, it will be constrained to take legal actions against Arcade City and its illegal TNVS operators considered as colorum,” LTFRB added.
On Wednesday, US-based ride sharing company Arcade City posted on its Facebook page that it is recruiting and activating drivers same-day across the Philippines brought about by Uber’s suspension.
It has launched its mobile app this month to the Apple and Android app stores which is now available in the country.
“Arcade City is recruiting and activating drivers same-day all across the Philippines to provide service in the gap left by Uber’s abrupt withdrawal yesterday — which put 66,000 drivers out of a job and stranded tens of thousands of riders,” it said in a statement.
The company said it embraces a new peer-to-peer model of ridesharing wherein drivers are free to build up their own transportation businesses like true entrepreneurs instead of controlling them from a corporate headquarters.
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 likewise review driver profiles in advance and choose the driver they prefer.
Arcade City has set up a Facebook group for drivers in the Philippines that are interested to work for the company.