Philippines Rejects Go-Jek due to restrictions on foreign ownership

The Land Transportation Franchising and Regulatory Board, a Philippine transport regulator, has rejected Go-Jek, an Indonesian company from operating in the country because of restrictions on foreign ownership.

The regulatory board's chairman, Martin Delgra had earlier said the company should be at least 60 per cent Filipino owned to operate in the Philippines. Jay Sabale, a spokesman said the latest decision is based on the same violation. "They can't come here unless they follow what is written in the law."

Go-Jek's setback has allowed Singapore's Grab to cement its dominance in the Philippine ride-hailing market, which has been called a 'virtual monopoly' by the country's anti-trust watchdog. A Go-Jek representative said they are disappointed with the regulatory board's decision to deny them a reconsideration. "Commuters in Singapore, Vietnam and Thailand as well as Indonesia benefit from our technology every day. But due to this decision, it seems drivers and commuters in Philippines will have to wait a bit longer." The representative said they will be exploring other options.

Go-Jek has been expanding in the Southeast Asia to compete with Grab.