In brief: Go-Jek denied Philippines entry

The Land Transportation Franchising and Regulatory Board (LTFRB) has denied the application of Indonesian ride-hailing firm Go-Jek that would have allowed it to enter the Philippine market, sources confirmed.

The LTFRB issued a resolution dated December 20, 2018 denying Go-Jek’s application, through its local subsidiary Velox Technology Philippines, as a transport network company over foreign ownership issues.

Source: Rappler

The Philippine constitution stipulates that only Filipino citizens or companies that are 60 percent Filipino-owned can operate a public utility. But Go-Jek’s Philippine subsidiary is mostly owned by Velox South-East Asia Holdings, its Singaporean parent company, according to the report.

Go-Jek said it would continue to engage positively with the LTFRB. It can appeal the agency’s decision.

Go-Jek had planned to expand to four Southeast Asian markets including the Philippines in 2018. But its Philippine entry has proved to be a challenge because of government regulations. The country also poses challenges for its competitor Grab, which told Tech in Asia that the Philippines is their least-performing market.