A US-based ride-hailing app called Arcade City, which launched recently, said it was not a transport network company (TNC) and forgave the Land Transportation Franchising Regulatory Board (LTFRB) for ordering it to cease operations.
“We forgive the LTFRB for ordering Arcade City to ‘cease operations’ before they understood what Arcade City is and is not, specifically how Arcade City is different from Uber,” Arcade said in a statement on Thursday.
“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 added.
According to Arcade, driver entrepreneurs may freely identify as Arcade City drivers, but Arcade City does not require payment from riders or drivers.
It also said that it would continue recruiting and activating drivers all across the Philippines to provide service in the gap left by Uber’s suspension.
On Wednesday, LTFRB ordered Arcade to cease operations because it was not an accredited TNC and would face sanctions if it would continue to operate without accreditation from the Board.
LTFRB Spokesman Aileen Lizada said that the Board would request assistance from the Department of Information and Communications Technology to shut down the Arcade City app.