LTFRB orders ride-sharing startup Arcade City to stop operations

The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday ordered Arcade City, a ride-sharing startup, to cease its operations.

In an advisory, the board said that Arcade City, which it considered another type of Transport Network Company (TNC), "has not coordinated with the LTFRB and, as such, cannot operate."

The LTFRB also "strongly warned" Arcade City "to stop all bookings made with the use of this kind of application/platform."

"Otherwise, it will be constrained to take legal actions against Arcade City and its illegal Transportation Network Vehicle Service (TNVS) operators considered as colorum," it added.

ADVISORY

LTFRB orders ARCADE CITY to cease operations pic.twitter.com/lHV8rXNQCW

— Official LTFRB (@LTFRB) August 16, 2017

Arcade City, which was just launched on Wednesday, claims to be an "Uber alternative, that aims to "provide service in the gap left by Uber's abrupt withdrawal."

In a statement posted on its Facebook account, Arcade City said that drivers are free to set their own rates while riders are also free to choose their own driver.

The LTFRB on Monday night suspended the accreditation of Uber for a month, ordering it to "cease and desist its operation on their online booking application during the period of suspension." — BM, GMA News