The LTFRB, (Land Transportation Franchising and Regulatory Board), warned of a crackdown if Arcade City, a ride-sharing app starts its operation without the proper accreditation.
This ride-sharing app intends to pair passengers via a website and mobile apps with drivers who provide the ride-sharing service.
This kind of service will benefit the Filipino people because traffic congestion
will be reduced since member drivers can’t just accept strait hails and they do not
unnecessarily drive around unlike jeepneys and other government licensed or regulated taxis that continuously cruise for hails.
This ride-sharing app will provide a flexible and independent job for Filipino
drivers.
Arcade City intends to fill the void left by Uber, a peer-to-peer ride-sharing and
transportation network company founded in the United States.
The LTFRB has a cease and desist order against Arcade City. It can fine drivers using Arcade City’s service and impound their vehicles as a penalty.
Arcade City, can not launch its service to replace Uber because it did not file an
application to operate in the Philippines before the LTFRB.
Remember that the LTFRB’s mandate under the law is to issue or cancel Certificates of Public Convenience or permits authorizing the operation of public Land Transportation services provided by motorized vehicles and to prescribe and regulate routes of service.
Aside from the fact that Arcade City did not file an application to operate before the office of the LTFRB, the reason for the issuance of the cease and desist order is that it will encourage illegal transport network companies and unregistered transport network providers to operate in the Philippines.
The fact is, regardless of the reasons and arguments for this ride-sharing app, arcade city needs to obtain the required approval or accreditation from the LTFRB before it can operate.