Ride-sharing startup Arcade City to LTFRB: We are different from Uber

Ride-sharing startup Arcade City on Thursday said it will continue the recruitment and activation of drivers in its platform despite the cease-and-desist order issued by the Land Transportation Franchising and Regulatory Board on its operations.

Though Arcade City aims to "provide service in the gap left by Uber's abrupt withdrawal," it insisted that it is different from Uber. 

"Arcade City does not provide 'pre-arranged transportation services for compensation' and therefore does not fit the LTFRB definition of a transportation network company," it said in a statement posted on Facebook.

"Driver entrepreneurs may freely identify as Arcade City drivers, but Arcade City does not require payment from riders or drivers," it added.

The LTFRB on Wednesday ordered Arcade City, which it considers as a type of Transport Network Company, to stop operations after failing to coordinate with the regulatory body.

Arcade City, which was just launched on Wednesday, claims to be an Uber alternative. The startup said it embraces a new "peer-to-peer model" of ride-sharing.

"Instead of controlling drivers from a corporate headquarters, Arcade City frees drivers to build up their own transportation businesses like true entrepreneurs," it said.

"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," it added. —Ted Cordero/KBK, GMA News