City says new transportation service must register under ordinance

City says new transportation service must register under ordinance

MIDLAND, TX (KWES) - Goodbye, Uber. Hello, Arcade City. The new ride sharing service launched over the weekend in Midland but the city says the company didn't get a permit to operate in town.

A group of former Uber drivers were upset that the app was taking so much in fees, so they looked for an alternative.

"Arcade City works off something totally different. It's pay what you think is fair," said Brett Stewart, an Arcade City driver.

The app just launched over the weekend. They started as an Arcade City Facebook group for people to request rides in Midland and the group quickly went viral.

"The first two days, we have 300 people sign up on Facebook," said Stewart.

However, the new app has not registered with city. The City of Midland passed an ordinance at the beginning of the year that regulates Transportation Network Companies (TNC). The ordinance requires the company to obtain a permit and a license.

"Eventually, we would like to become a TNC, but right now, we are running off of the donation basis. There's no laws or restrictions yet for giving rides," said Stewart.

Under the ordinance, a TNC is defined as, "an organization that provides on demand transportation services for compensation using an online-enabled application or platform to connect passengers with drivers."

The city says Arcade City is required to register, regardless of whether they only take donations.

"It has come to our attention that a group named Arcade City has begun operations within the City of Midland. At this time, we are working to learn more about the business and hope to make contact with representatives in order to discuss compliance under our recently passed ordinance. We are excited that another transportation network company wants to do business in Midland and look forward to working with them," said Midland Public Information Officer, Sara Bustilloz.

Copyright 2016 KWES. All rights reserved.