Commercial floating car data (FCD) is being increasingly used as a traffic data source due to its lower cost despite concerns about its reliability. This paper focuses on the evaluation of FCD speed quality as a surrogate measure for arterial speed from different aspects. First, FCD speed is compared to video-based traffic data, collected from a specific urban road segment and assumed as ground truth in (a) descriptive evaluations, (b) speed estimation, and (c) level of service estimation. Regression analysis carried out to derive transformation function between two datasets showed a nonlinear relation with a high correlation coefficient of 0.82. Working with data along an urban corridor of 3.6 km also showed that despite some outliers, FCD was capable of detecting peak-hour queue formations as well as incident related ones. Use of transformation function on FCD speeds helped to increase its potential in urban traffic monitoring.