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LTFRB issues cease and desist order vs Arcade City

The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday ordered ride-sharing startup Arcade City to "cease and desist" from operating and launching its mobile application on April 16.

"LTFRB is strongly warning Arcade City to cease and desist from launching its mobile app on 16 April 2018, and to stop all bookings made with this application/platform as those who are operating are considered colorum," LTFRB said in a statement shared to the media.

"Otherwise, LTFRB will be constrained to take legal actions against Arcade City and all responsible parties involved," the agency added.



LTFRB's warning came after the management of Arcade City announced that it will launch its mobile application across Southeast Asian countries, including the Philippines, on Monday April 16.

"Arcade City expands into all eight countries where Uber suspended service this week after selling their operations to regional competitor Grab. The countries include Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam," Arcade City said.

"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," it added.

Ride-hailing service firm Uber has agreed to sell its Southeast Asian business to regional rival Grab. The move would result in an operational merger in the Philippines.

In August last year, the LTFRB already warned Arcade City to stop its operations as it was supposedly operating as a transportation network company (TNC) without coordinating with the said agency.

However, Arcade City had insisted that it will continue the recruitment and activation of drivers in its platform despite the order. It also claimed to be 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," the Arcade City said.

According to Arcade City, drivers under their service are free to set their own rates, build their own recurring customer base, and offer other services like deliveries or roadside assistance. — BAP, GMA News