Gojek reapplies to enter the Philippines

Indonesian ride-hailing unicorn Gojek has resubmitted its application to operate in the Philippines, a market currently dominated by rival Grab.

Photo credit: Gojek

Gojek has applied to enter the country twice before but was rejected both times over the strict foreign ownership rules of the country.

Now, Philippine company Pace Crimson Ventures Corp. has acquired a 60% stake in Gojek’s affiliate in the country, Velox Technology Philippines – enough to meet the minimum local ownership requirement for transport companies, Nikkei Asian Review reported, citing documents filed with the Philippines’ Securities and Exchange Commission.

Martin Delgra, chairman of the Philippines’ Land Transportation Franchising and Regulatory Board, was quoted in the report saying that the agency has already seen the documents and endorsed it to the Department of Transportation, which will ultimately decide on the matter.

According to the report, Velox’s papers are already in the hands of the department’s franchise review staff. Transportation Secretary Arthur Tugade will be signing the decision, but the department did not give any details on the timing.

Earlier this month, Gojek revealed upcoming plans, including its expansion to the Philippines and Malaysia next year. The company has already made moves in Malaysia and is now set to start limited operations in the country starting January 2020.

In the Philippines, Gojek has already advertised for a “head of government relations” on LinkedIn earlier this month to further strengthen its bid to obtain a license to operate.

Gojek is no stranger to the Philippines. Early this year, Gojek announced that it was “making a substantial acquisition of shares” in Manila-based fintech startup Coins.ph, in a deal reportedly worth US$72 million.

Update (November 22, 8:30 pm): The Nikkei report said that Gojek was working with Zalora Philippines CEO Paulo Campos III, stating that he was the largest shareholder of Pace Crimson.

Campos told Tech in Asia that Zalora Philippines has no involvement with Gojek’s plans, and that his father Paulo Campos Jr. and mother Cecilia Campos manage Pace Crimson and are its largest shareholders.