Arcade City Throws Shade at the LTFRB
With thousands of commuters and drivers left hanging due to Uber’s one-month suspension, Arcade City has launched operations in Manila, Cebu, Angeles, and Batangas.
The ride-sharing app is different from Uber and Grab in that it doesn’t govern its drivers—it simply gives them a platform on which they can connect with passengers. That means drivers are free to set their own rates and hours, build their own customer base, and offer additional services like delivery and roadside assistance without being answerable to a larger corporation. Arcade City claims that its drivers make two to three times what they used to make driving for Uber.
The app gives commuters more freedom of choice as well. Instead of being assigned to a random ride, passengers can view all drivers’ profiles on a map and choose accordingly.
The LTFRB has taken issue with Arcade City’s launching operations without consulting them first, and has ordered the company to cease operations in the Philippines. However, the self-governing ride share app isn’t having any of it.
“We forgive the LTFRB for ordering Arcade City to 'cease operations' before they understood what Arcade City is and is not, specifically how it is different from Uber,” the company stated in a press release. “Arcade City does not provide 'pre-arranged transportation services for compensation' and therefore does not fit the LTFRB definition of a transportation network company. Driver entrepreneurs may freely identify as Arcade City drivers, but we do not require payment from riders or drivers."
Arcade City has a history of swooping in after Uber has been booted out by authorities. It was established in Austin, Texas last year, after Uber and Lyft withdrew from the city.