Go-Jek denied entry to the Philippines

Reading Time: 1 minute

Go-jek Denied Entry To The PhilippinesIndonesia’s Go-Jek suffered a setback to its expansion plans on January 9 after the transport regulator in the Philippines rejected its application to launch a ride-hailing service, saying its domestic unit did not meet local ownership criteria.

The Land Transportation Franchising and Regulatory Board (LTFRB) of the Philippines said the issue is that Go-Jek’s Philippines-based business — an entity called Velox Technology Philippines — is majority owned by an overseas business, namely Go-Jek’s own Singapore-based Velox Southeast Asia Holdings.

That violates local law which stipulates that at least 60 per cent of a company should be owned by Philippines individuals or entities, the board said.

Go-Jek applied for a license to operate in Manila in August 2018, but later in the same month, ride-hailing was added to a list of industries where foreign ownership is limited to 40 per cent.

Velox “does not meet the citizenship requirement and the application was not verified in accordance with our rules,” regulator chairman Martin Delgra said, according to Reuters.

A Go-Jek spokesman noted that “we continue to engage positively with the LTFRB and other government agencies, as we seek to provide a much-needed transport solution for the people of the Philippines.”

Go-Jek has still options to appeal the decision or team up with Filipino investors to reach the 60-per cent limit.

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Indonesia’s Go-Jek suffered a setback to its expansion plans on January 9 after the transport regulator in the Philippines rejected its application to launch a ride-hailing service, saying its domestic unit did not meet local ownership criteria. The Land Transportation Franchising and Regulatory Board (LTFRB) of the Philippines said the issue is that Go-Jek’s Philippines-based business — an entity called Velox Technology Philippines — is majority owned by an overseas business, namely Go-Jek’s own Singapore-based Velox Southeast Asia Holdings. That violates local law which stipulates that at least 60 per cent of a company should be owned by Philippines individuals...

Reading Time: 1 minute

Go-jek Denied Entry To The PhilippinesIndonesia’s Go-Jek suffered a setback to its expansion plans on January 9 after the transport regulator in the Philippines rejected its application to launch a ride-hailing service, saying its domestic unit did not meet local ownership criteria.

The Land Transportation Franchising and Regulatory Board (LTFRB) of the Philippines said the issue is that Go-Jek’s Philippines-based business — an entity called Velox Technology Philippines — is majority owned by an overseas business, namely Go-Jek’s own Singapore-based Velox Southeast Asia Holdings.

That violates local law which stipulates that at least 60 per cent of a company should be owned by Philippines individuals or entities, the board said.

Go-Jek applied for a license to operate in Manila in August 2018, but later in the same month, ride-hailing was added to a list of industries where foreign ownership is limited to 40 per cent.

Velox “does not meet the citizenship requirement and the application was not verified in accordance with our rules,” regulator chairman Martin Delgra said, according to Reuters.

A Go-Jek spokesman noted that “we continue to engage positively with the LTFRB and other government agencies, as we seek to provide a much-needed transport solution for the people of the Philippines.”

Go-Jek has still options to appeal the decision or team up with Filipino investors to reach the 60-per cent limit.

Share your vote!


Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid