Uber alternative Arcade City to make PH debut sans LTFRB green light

Amid a stop order from the government, ride-sharing startup Arcade City would still launch in the Philippines on Monday in an attempt to fill the void left by Uber, a top official said.

The Land Transportation Franchising and Regulatory Board (LTFRB) told the Uber alternative on April 12 to stop from “operating as another form of transportation network company (TNC).”

In an e-mail to reporters, Arcade City founder and CEO Christopher David said: “Yes, we will continue launching the app as planned on April 16th. Hopefully, the LTFRB spends more time processing applications of TNVS (transport network vehicle services) and drivers, [and] less time on making threats to companies trying to help.”

David, a former Uber driver himself, said Arcade City, which began in Austin, Texas, in 2016 does not consider itself a TNC.

“That’s because we are a platform to support local networks forming their own TNC/TNVS and all using one platform,” he said.

This is not the first time the LTFRB tried to block Arcade City’s entry into the country. The agency issued the same order against the startup in August last year, around the same time it temporarily suspended Uber’s operations.

David said the app would be available across the country, not just in Metro Manila. However, the availability of the service would be “dependent largely on how many drivers sign up where.”

The app claims not having any corporate middleman who could pull out when profits start plunging, according to an explanatory video on its website. The idea is to let drivers in a local area run the app, including setting their own terms, such as the rates.

David claimed more than 20,000 drivers and riders have already signed up in the Philippines last year through an early version of the mobile app.

Arcade City would incentivize the growth of its driver and rider network through a blockchain-based cryptocurrency called “arcade tokens,” according to its official website.

Riders and drivers could earn tokens through any action that gives “measurable value to the Arcade City network.” These actions range from providing a well-reviewed service to recruiting more drivers and riders.

The tokens could then be sold for cash or used within the Arcade ecosystem for services and bonus features. This incentive system, David said, “will take another month or so to fully roll out.”

The app’s introduction in 2016 lured tens of thousands of members, according to media reports. It is considered the world’s first self-governing ride-sharing network.

Ride-sharing firms, aside from Arcade City, have sought LTFRB’s go-signal to enter the Philippine market, which would be monopolized by Grab after Uber’s exit.

LTFRB gave Uber until April 15 to operate here. Uber was scheduled to end its services on April 8, after the company’s Southeast Asia operations were acquired by Grab.

The weight of this LTFRB order against Uber, however, remains unclear, given that it runs counter to an order from the Philippine Competition Commission (PCC).

The PCC said Uber was obliged to continue operations until it has finished a review of the deal with Grab. The extension did not have a deadline.