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Go-Jek’s expansion in the Philippines blocked by regulator
Indonesia’s leading ride sharing app Go-Jek has hit a roadblock in its latest expansion bid in Southeast Asia.
Market entry into the Philippines has been blocked by the Philippines’ transport regulator due to exceeding foreign ownership limits.
The Land Transportation Franchising and Regulatory Board rejected Go-Jek’s application as it ‘did not meet the citizenship requirement and the application was not verified in accordance with our rules.’
Under the rules a foreign entity may own up to 40% of a Philippines-based business.
Go-Jek teamed up with Velox Technology Philippines but Velox is majority owned by Go-Jek.
"If they want to appeal, that is their option," LTFRB chairman Martin Delgra told Reuters.
Go-Jek said it will ‘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 can get a local partner that will own at least 60% of the ride-hailing entity to comply with the law," the regulator’s head of communications January Sabale said.
However that will take time.
Several local ride hailing services have entered the Manila market but have struggled to make headway against dominent player Grab, which commends about 90% of the market.
Go-Jek has spent millions to expand in Southeast Asia across Vietnam, Singapore and Thailand.
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