Ridesharing company Arcade City has launched a new mobile app for Android and iOS in the Philippines. But the Land Transportation and Franchising Board (LTFRB) has said Arcade City cars are not authorized to operate because the company “has not coordinated” with the LTFRB.
LTFRB board member Aileen Lizada described all Arcade City cars “colorum,” operating without a valid franchise.
In a statement, the LTFRB told Arcade City should “stop all bookings made” through its app. It warned “legal actions” would be taken should it fail to do so, and its drivers would be apprehended for colorum operations.
Texas-based Arcade City said it is recruiting and activating drivers across the Philippines to provide service in the gap left by Uber’s suspension by the LTFRB after it (Uber) violated a ban on accrediting new drivers.
“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.”
Arcade City said its 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.
The 15-month-old Arcade City is the world’s first and only self-governing ridesharing network, which makes use of a peer-to-peer model allowing riders and drivers to connect directly without intervention from the corporate headquarters.
“Over the past year, Arcade City has built the world’s first self-governing ridesharing network — run by drivers, for drivers and riders to connect on their own terms without any far-distant corporation being able to shut down the network,” Arcade City said in a note published on their Facebook page.
Launched in 2015–after Uber withdrew its service in Austin, Texas—Arcade City now has a growing network of 43,000 members.
Arcade City has announced plans to introduce a token system to share in the profits to drivers by issuing a blockchain-based crypto-equity token allowing for driver ownership and community governance.
