19 Mar, 2019E27.CO
The Philippines’ Land Transportation Franchising and Regulatory Board (LTFRB) announced on Tuesday that it has rejected the appeal of Indonesian ride-hailing giant Go-Jek to launch a ride-hailing service in the country through its subsidiary Velox Technology.
Board chairman Martin Delara told Reuters that the accreditation committee has denied Velox Technology’s application as its failed to meet local ownership criteria.
The board has initially denied Go-Jek’s initial request earlier this year.
In the Philippines, ride-hailing was added to the list of industries when foreign ownership is limited to 40 per cent.
A Go-Jek spokesperson said that the company is “disappointed” at the decision and will “explore” its options.
The Philippines by far is the only market where their effort seemed to be met with regulatory hurdle.
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