Go-Jek denied entry to the Philippines

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.



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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...

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.



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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