New ride-share app launched just days after Uber suspension

Robyn Ryan
August 17, 2017

The transport authority requires Uber to get permits for its drivers and vehicles, in the same way taxi companies must.

Up for grabs are the more than 300,000 internet-based bookings per day cornered by TNC main players Grab and Uber.

Yet, Uber reportedly continued to accept applications.

"The latest irresponsible act of the Respondent Uber is not about pushing innovation in the context of fair regulation but it is about unduly challenging the limit of fair regulation to continue to engage in business in this country thereby compromising sound business practices", the LTFRB said in its order.

LTFRB board member Aileen Lizada, however, said Arcade had not formally applied to operate in the Philippines.

"All these cases involving Uber and for that matter anyone involved in public transportation system has to understand that we need to be in some level of regulation", board Chairman Martin Delgra told reporters at a briefing on Tuesday.

A new ride-sharing app has launched in Manila and Cebu City just days after the government suspended Uber for 30 days.

Previous year the regulator suspended the acceptance and processing of applications for all ride-sharing services, including Uber, to study further how to regulate the industry.

Uber has offered to pay a fine rather than be suspended.

"I really wish the MC (memorandum circular) gives us other options but there's only one penalty there, and that is cancellation of accreditation", Liza explained.

It is estimated that some 200,000 Philippine commuters have been affected by the temporary suspension of Uber.

Uber TNVS can not shift to Grab given the LTFRB order on July 26 which stops Uber and Grab from accepting and accrediting new TNVS.

The suspension is rooted in the LTFRB's decision a year ago to suspend acceptance and processing of driver applications for all ride-sharing services while the regulator studied possible new rules.

The suspension led to an outpouring of anger by Filipinos on social media.

Uber issued an email to users informing them of the suspension, entitled "we'll be serving you again soon". "Of course, I'm not in favor of it because I don't see any reason why they should do it", he said.

On Wednesday, Arcade City announced that its app was now available in Apple and Android versions and that it was recruiting and activating drivers across the Philippines.

Other reports by VideoGamingPros

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