MANILA - The Land Transportation Franchising and Regulatory Board (LTFRB) on Friday warned ride-hailing firm Arcade City from proceeding with the launch of its mobile app next week.

Lawyer Aileen Lizada, LTFRB board member, stressed that they have a "cease and desist" order against the company that aims to fill the void left behind by ride-hailing app Uber.

She said Arcade City has no papers or even pending applications before the LTFRB, putting the safety of the passengers at risk when they push through with the launch.

The lawyer said Arcade City drivers caught plying the roads will be slapped with a P120,000 fine, while his or her vehicle will be impounded for 3 months.

The LTFRB said it will not hesitate to take legal actions against the transport network company is it pushes through with the launch.

In its blog, Arcade City said it is launching its "decentralized rideshare network" across Southeast Asia. particularly in Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

“Arcade City is happy to continue filling the void Uber leaves behind. Drivers and riders all over the world are excited for a true alternative,” it said.--report from Joyce Balancio, ABS-CBN News