Arcade City faces getting ‘colorum’ tag

Transport authorities would launch a nationwide crackdown against new ride-hailing app Arcade City should it continue to defy the government and push through with its Philippine operations on Monday.

The Land Transportation Franchising and Regulatory Board (LTFRB) on Saturday assailed Arcade City for continuing to defy the cease and desist order issued by the agency.

The app was encouraging illegal transport network companies and unregistered transport network providers, said LTFRB Board Member Aileen Lizada.

Protecting the public

If Arcade City goes online on Monday, Lizada said enforcers from LTFRB, Metropolitan Manila Development Authority, Land Transportation Office and Philippine National Police’s Highway Patrol Group would go undercover as passengers to apprehend the app’s drivers and impound their vehicles.

“We cannot afford any more irregularities such as this,” Lizada said. “We need to protect the riding public.”

After Arcade City was ordered this week to cease operations for the second time, it taunted the LTFRB by saying that the board did not understand how its technology and model work.

The online firm said it “does not fit the LTFRB definition of a transportation network company.”

It said it would not require payment from riders and drivers but use cryptocurrency called “Arcade tokens” which could be sold for cash or used to purchase services or goods in Arcade.

Should Arcade operate, Lizada said it would be tagged as a “colorum” or illegal.

She said the LTFRB would also coordinate with the US Embassy and the Department of Information and Communications Technology to take action against Arcade founder and chief executive officer, Christopher David.

“He is making a mockery of our rules and regulations,” she said of David, who packaged his company as an alternative to Uber.