Go-Jek denied entry to the Philippines

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The Philippine transport regulator Land Transportation Franchising and Regulatory Board (LTFRB) on March 19 rejected an appeal from Indonesia’s Go-Jek to launch a ride-hailing service in the country.

The firm applied for a license last year through wholly-owned subsidiary Velox but was denied in January, after ride-hailing was added to a list of industries where foreign ownership is limited to 40 per cent.

“The application of Velox Technology Inc. [for a ride-hailing license] was denied for failing to meet the citizenship requirement,” Martin Delgra, chairman of LTFRB ‘s board, said, according to Reuters.

Go-Jek reacted not amused.

“Go-Jek is disappointed with the LTFRB’s decision to deny our motion for reconsideration and our offer to address Filipino commuters’ urgent need for more transportation options,” a spokesman for the Indonesian firm said, adding that “we will now explore our options.”

Go-Jek in May last year said it will use proceeds from several funding rounds to expand in Southeast Asia, namely Singapore, Vietnam, Thailand and the Philippines and add other regional countries, including Malaysia, in a second expansion round.

Operations in Singapore, Thailand and Vietnam kicked off over the past months. The Philippines so far is the only market where Go-Jek’s expansion has been met with a regulatory hurdle.



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The Philippine transport regulator Land Transportation Franchising and Regulatory Board (LTFRB) on March 19 rejected an appeal from Indonesia’s Go-Jek to launch a ride-hailing service in the country. The firm applied for a license last year through wholly-owned subsidiary Velox but was denied in January, after ride-hailing was added to a list of industries where foreign ownership is limited to 40 per cent. “The application of Velox Technology Inc. [for a ride-hailing license] was denied for failing to meet the citizenship requirement,” Martin Delgra, chairman of LTFRB ‘s board, said, according to Reuters. Go-Jek reacted not amused. "Go-Jek is disappointed...

Auto Draft

The Philippine transport regulator Land Transportation Franchising and Regulatory Board (LTFRB) on March 19 rejected an appeal from Indonesia’s Go-Jek to launch a ride-hailing service in the country.

The firm applied for a license last year through wholly-owned subsidiary Velox but was denied in January, after ride-hailing was added to a list of industries where foreign ownership is limited to 40 per cent.

“The application of Velox Technology Inc. [for a ride-hailing license] was denied for failing to meet the citizenship requirement,” Martin Delgra, chairman of LTFRB ‘s board, said, according to Reuters.

Go-Jek reacted not amused.

“Go-Jek is disappointed with the LTFRB’s decision to deny our motion for reconsideration and our offer to address Filipino commuters’ urgent need for more transportation options,” a spokesman for the Indonesian firm said, adding that “we will now explore our options.”

Go-Jek in May last year said it will use proceeds from several funding rounds to expand in Southeast Asia, namely Singapore, Vietnam, Thailand and the Philippines and add other regional countries, including Malaysia, in a second expansion round.

Operations in Singapore, Thailand and Vietnam kicked off over the past months. The Philippines so far is the only market where Go-Jek’s expansion has been met with a regulatory hurdle.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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