Philippines says no to Indonesia's Go-Jek
itoday -Conundrums after conundrums for Indonesia's ride-hailing service provider Go-Jek. The organization's year kicked off with a case of a rude Go-Jek driver in Singapore.
Now Philippines has said no to its entry in the Southeast Asian nation. Its Land Transportation Franchising and Regulatory Board (LTFRB) has rejected Go-Jek's operations, citing foreign ownership issues.
Go-Jek had submitted the application through a local subsidiary, Velox Technologies Philippines, which LTFRB says has violated Section 11, Article 12 of the Philippine Constitution.
By law, a public service franchise should be 60% owned by locals. 99% of Velox, however, is owned entirely by Singaporeans.
The rejection by LTFRB would no doubt be a huge sigh of relief for Grab. The Singapore based ride-hailing service controls a whopping 90% of the market despite facing competition from nine other players in the Philippines.
Yet, they are set to face stiff competition from Go-Jek in Singapore as the Indonesian ride-hailing service has penetrated Grab's home base.