Uber & Lyft Drivers Flock to New Rideshare Startup ‘Arcade City’ After Rate Cuts

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Uber & Lyft Drivers Flock to New Rideshare Startup ‘Arcade City’ After Rate Cuts

Volume of driver signups crashes server; Arcade City app launches February 14th; Uber called a “rolling sweatshop”

PORTSMOUTH, NH — More than 600 Uber and Lyft drivers signed up for new ridesharing startup Arcade City this week in the aftermath of dramatic rate cuts by the two rideshare companies.

“Drivers are angry and rightfully so,” said Arcade City founder Christopher David. “Their take-home pay was just slashed up to 40% by some nerds in San Francisco who don’t even drive. Arcade City is here to do things differently.”

Arcade City is a ridesharing mobile app releasing officially for Android and iOS on Valentine’s Day, February 14th. Riders can schedule rides in advance or at the tap of a button on a “pay what you think is fair” basis.

Arcade City had a successful soft launch on New Years Eve in Portsmouth, New Hampshire. More than 100 passengers were transported safely in donation-based rides by ten drivers, most of them current or former Uber drivers.

“Our goal for January was to sign up 100 drivers by the end of the month to help us test the app,” said David. “Since the rate cuts we’ve been signing up 100 drivers every single day and the signup rate keeps increasing. It’s overwhelming.”

On Friday the Arcade City website crashed under heavy demand of driver signups, forcing server upgrades. More than 30 drivers are now being trained as regional leaders to recruit drivers and riders, with most of the U.S. covered, including Hawaii and as far away as Australia.

“The Achilles’ heel of Uber and Lyft is their centralized management of pricing. This week’s uproar by drivers — and their willingness to join an alternative — shows the failure of that approach,” said David. “You cannot build a sustainable long-term relationship with drivers if you take away their ability to set their own pricing. Arcade City will decentralize those decisions to the level of the driver and their customers.”

David is a former Uber driver and founder of the Free Uber activism campaign centered in Portsmouth, New Hampshire. In November he was arrested by Portsmouth police on felony wiretapping charges for posting a YouTube video [included below] recorded while driving illegally for Uber in Portsmouth. Last week the charge was reduced to a misdemeanor after a police review found it was misclassified as a felony, but David continues to face up to one year in jail and a $2,000 fine.

Arcade City will launch globally on February 14th.

DRIVER STATEMENTS

“Uber has said repeatedly that it likes to ‘experiment’ with fares. In reality, they are experimenting with livelihoods. They are experimenting with the ability of some people to put food on their table and to pay their rent/mortgage. That is unacceptable. Lyft just doesn’t have the backbone to stand up to them either. Arcade City does. I am joining Arcade City because I want to see the rideshare industry truly be about drivers and passengers, not executives hellbent on forcing workers into servitude just to discard them when they have no need for them.” –Mason J., Raleigh, NC

“Uber is a rolling sweatshop – and they make us provide the shop! Lyft is better, but heading down that terrible path with growing speed! Arcade City is built on driver experience and geared toward a fair and worthwhile model. With all these drivers from other services we can avoid the pitfalls of Uber and the like. I have a 4.9 rating from 7 months with Uber, 14 months with Lyft and i am ready for an alternative with a conscience!” –Keith Hale, Dallas/Fort Worth, TX

“I’m excited to work with Arcade City. They will allow customers to tip through the app, unlike Uber. With Uber they cut our fares by over 40% and they didn’t even give us a warning.” —Philip Heath, Maui, HI

“On Uber’s platform I’m rated as a 4.9. At first I loved it, but their recruiting efforts have caused supersaturation in the market place. There’s just too many drivers here in Denver. In response they cut rates so low that they hurt the driver’s bottom line. It’s hard to make any money with Uber anymore. Having a rideshare service founded by drivers is awesome! We have a direct say in how we do business. Arcade City is providing the means to change the industry.” —Aaron B., Denver, CO

“Arcade City is not about pleasing Wall Street like other ridesharing companies. It provides a platform that empowers both the driver and passenger from a foundation of trust that creates the ultimate transportation experience.” —Michael G. Johnson, Atlanta, GA

“In a market that was ripe for ride share advertising, Uber never seemed to pay attention to the driver’s suggestions and essentially left building the customer base to us. They seemed more interested in over-saturating the market with drivers, and then they cut all of our rates. I’m ecstatic to help build the Arcade City service. One that cares about everyone’s success, not just the pockets of shareholders.” —Jake, 4.83 Uber rating, Wichita, KS

“Rideshare drivers everywhere need to look towards Arcade City. Uber’s blatant disregard for and disrespect of its drivers is beyond reprehensible. It borders on criminal. Arcade City is designed to empower drivers. They are aware that it is the drivers who are the front line and the ambassadors of the company. Drivers deserve to feel appreciated by the company they choose to give their dedication! Join the Arcade City Revolution and be part of a kinder, gentler rideshare experience.” —Scott Goldstein, Philadelphia, PA

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24 Comments

  1. It sounds like these people need to look for better jobs. Uber and others can slash salaries. None of these Uber drivers are receiving benefits. No everyone is placing their faith in an untested app that taxi cab companies have invented first.

  2. I’ve been an Uber driver based out of Portland for more than a year. 4.85 rating. In the time I’ve been on Uber, rates have been slashed 4 times, sometimes with warning and sometimes without. It is pretty depressing we drivers have no control over the rates and they can just plummet like that anytime Uber wants. That being said, I don’t trust this new app because 1. Christopher David is the founder. 2. If riders pay what is fair, how many riders end up paying nothing at all? I’ve given well over 2000 rides on Uber and most of the time people don’t tip. 3. How does Arcade City make money? If it can’t make money ifself, it means it won’t be around long enough to compete with Uber, Lyft ect. Uber might be a bunch of Silicon Valley punks but they’re worth 40 billion dollars, and are backed by Google. Despite what ppl think,the Uber app is well made and they’re still making improvements. Uber has a team of software engineers working on their app. What does Arcade City have? Christopher David and anyone he convinces to work for free? I’ll see how successful this app launch is before I get excited for something that could just be another one of Christopher David’s fever dreams.

  3. “More than 600 Uber and Lyft drivers signed up for new ridesharing startup Arcade City this week

    Let me see … let’s do some freetard math here: 600/100 = 6, with 100 being the ratio of bullshit to truth for anything a freetard says or writes.

    So 6 (including Douche David) signed up for the site – maybe.

  4. Facebook account required = Arcade City fail

  5. Regarding those 7 people who are are “quoted”: I wonder how many of those people actually exist or had their name/identity/likeness used without their permission?

  6. So I guess you guys don’t think uber is the bees knees anymore. Dude got himself arrested defending the same company he’s now realizing doesn’t give two bits about him. What about uber grandma? She happy she got used by uber to fight city hall? Free Uber! Bwahahaha!

    If Arcade City is smart, they will agree to city regulations, charge the same as cabs and take over the New Hampshire market.

  7. Boy politics SURE does make strange bedfellows. So now the guy who was all about Free Uber. No longer cares or believes Uber respects its drivers. This is some straight up Shakespeare drama to try and follow along with. Which is why the moron cabbies should have just kept doing what they were doing. Who knows, by the end of this play, Arcade City will be a Cab company!!

  8. Drivers were making MORE before criminal enterprises such as uber came to the scene.

  9. There is a market here where someone can set up like a cab company providing insurance, license and all that, charge a slightly cheaper fare than a cab company but do not have taxi/cars instead use the rideshare model.

  10. Here is my 2 cents. What not create an app where the drivers pays a one time flat fee (i.e. $500 per year) and keep 100% of the fare. This should put Uber & Lyft out of business!

  11. I’m not sure how well these folks will fare. You can’t compete with the free rides Uber and Lyft are giving out. I for one have been using Uber for a while but just received $50 in free Lyft credit with this promo code: HALFTIME50

    Why would I suddenly go to the competitor?

  12. What the article says is completely true, over 600 people across the country have signed up and it’s only growing. Good drivers was the to continue to drive, we enjoy it, but the pay is dismal. So why not attempt to do something different than the other rideshare companies?

    Arcade.city/drive/aaronblack

  13. All of them were used with permission. In fact they were happy to be quoted.

  14. I vote for this one

  15. FlapJacks always complaining.

  16. The sad reality is that there is no need to reduce rates. I have driven for both Lyft and Uber for over a year, 2,000 + rides. Over this last week I have asked about 60 people about the decrease, NOT one person called for a ride based on the reduction. Most had not even seen it.
    But here’s the point. They only got the message when they went on the app. to request the ride.
    If Uber wanted to promote the reduction. Why not send it to their email first?
    The real question is, why are they doing it?
    Why piss off so many drivers they paid to join, I was paid $1,000.
    They still want us to bring on more drivers. Are they stupid?
    Finally, I do not believe anyone wants lower rates. Every rider I talk to is very pleased with the rates. Sorry not surge!!

  17. Nothing that asswipe Christopher David writes or says is true – not by a long shot.

    Look at his past history, which has been re-hashed many times over on this site. The guy has a long trail of deception and lies.

    I doubt very much there are 600 people that signed up for a service with a website that looks like it was designed by a child. But if it is true, then you guys have probably found the 600 most profoundly stupid people in the country.

  18. Junior troll MikeAB is the juvenile version of FlapJacks. Always complaining but like an angry 7th grader.

  19. AnonyMouse get back in your hole.

  20. So tell me, AnonyDouche: what exactly are you doing if not trolling?

  21. Regulations are the only way to raise uber fares but it’s probably too late for you to ask for them since you spit in the face of regulators. Everything uber is doing has been done before, that’s how we ended up with regulations but you chose preach about the taxis being cartels. What happens when your app fails?

  22. EVERYONE TO THE DRIVERS AND RIDERS NEED TO STOP USING UBER OR LYFT NO MORE SLAVE JOB . TRY USING THE NEW BEST THE NEW GREAT APP , MONEY , FUN AND HAPPINESS THE APP CALL ARCADE CITY NEW RIDE SHARING REAL COMPANY NOT SLAVERY ILLEGAL CALL THEM SELF COMPANY LIKE UBER AND LYFT .

  23. in my opinion, it’s just the matter of time before all of these ridesharing industry bull shit goes belly up..another dot com bubble is building up and about to be burst in everybody’s face including the government!

  24. Driver over-saturation is the only reason why Uber’s rates are decreasing over time. Too many drivers “drives” the demand down for Uber to maintain the position’s value at its current (former) rate(s). Fortunately, it seems to have plateaued for the time being.

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