Arcade City ordered to halt operations
The Land Transportation Franchising and Regulatory Board (LTFRB) ordered for the second time a new app-based transport service to halt its operations and expected formal launch in the country next week as it has yet to coordinate with the government and submit its application to be a transport network company (TNC).
In its cease and desist order, the LTFRB said that Arcade City should stop engaging drivers and riders as their operations are considered “colorum” since they are not accredited by the board.
Should Arcade City continue to defy its order, the LTFRB warned that legal actions would be taken against all those involved in the app’s operations.
On their website, Arcade City founder and CEO Christopher David said that their app would be launch in eight Southeast Asian countries on Monday next week, following Uber’s exit in the region.
He claimed that since August last year, they were able to build in Manila “a large network of drivers,” which they are working on to expand.
“Arcade City is happy to continue filling the void Uber leaves behind. Drivers and riders all over the world are excited for a true alternative,” David said.
While the LTFRB already issued a cease and desist order against Arcade City in August last year, the app’s management defied it as it pointed out that its model is not covered by the board’s definition of a TNC.
“Arcade City does not provide ‘pre-arranged transportation services for compensation’ and therefore does not fit the LTFRB definition of a [TNC],” the company said in its statement then.
To date, there are three TNCs which are seeking accreditation from the LTFRB—Lag Go, Hype and Owto. The LTFRB earlier said that it will fast-track the processing of the applications of these TNCs, especially that it has already ordered Uber to cease operating as a TNC by Monday./ac
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