LTFRB strikes down ride-sharing app Arcade City is colurum
The Land Transportation Franchising and Regulatory Board (LTFRB) has ordered ride-sharing app Arcade City to cease operations for being a “colorum” operator.
LTFRB board member and spokesperson Aileen Lizada said: “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.”
On Wednesday, US-based ride sharing company Arcade City posted on its Facebook page that it was recruiting and activating drivers same-day across the Philippines brought about by Uber’s suspension.
It has launched its mobile app this month on the Apple and Android app stores 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 ride-sharing wherein drivers are free to build up their own transportation businesses like true entrepreneurs instead of controlling them from a corporate headquarters.
But the LTFRB has stepped its foot down on Arcade City.
“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,”Lizada said.(PNA)