Peer-to-Peer Ridesharing Company Expands Globally

Arcade City, a 14-month-old ridesharing company in Austin, Tex., plans to expand its peer-to-peer app from to 155 countries through Apple Inc. and Google Inc.’s smartphone app stores.

The company launched the service, which allows drivers to manage their own businesses, last year in Austin after Uber and Lyft temporarily pulled out of the market due to local regulations regarding driver background checks. Arcade says most of its drivers previously worked with one of the two ride-hailing companies.

Under Arcade’s model, drivers can set their own rates, build their own customer base, and offer additional services such as deliveries or roadside assistance without any interference from the company. Riders can review driver profiles in advance and communicate directly with them without any corporate intermediary.

Arcade claims its top drivers earn two to three times more money than they would with other services. The company has 40,000 members in Austin and expects to turn a profit in the fourth quarter, which it says would make it the world’s first profitable ridesharing company.