The Philippine Land Transportation Franchising and Regulatory Board (LTFRB) has rejected the request from Indonesian ride-hailing company Go-Jek to operate in the country because of a local regulation on corporate ownership.
The LTFRB pre-accreditation committee's Resolution No. 096, dated Dec. 20, 2018, rejects Go-Jek's application through local transport network company (TNC) Velox Technology Philippines, kompas.com reported on recently.
The board rejected the application on the grounds that it violated the regulation requiring Philippine individuals or entities to own 60 percent of a TNC. Velox Technology Philippines is reportedly 99.99 percent owned by Singaporean investors.
LTFRB pre-accreditation committee head Samuel Jardin confirmed the rejection, but added that Velox could still appeal the decision.
The decision has halted the Indonesian ride-hailing company's plans to enter its fifth ASEAN country after expanding its operations to Singapore, Vietnam and Thailand.
Go-Jek stressed that it had not given up on its plan to enter the Philippine market. “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,” a Go-Jek representative said in a statement, as quoted by techcrunch.com.
Separately, a spokesperson for rival company Grab, which is allowed to operate in the Philippines, said it was compliant with the regulation, as the majority of its Philippine business was locally owned. (bbn)