Report: LTFRB rejects Go-Jek’s Philippine expansion

Further reducing our commuting options
by Jason Tulio | Jan 10, 2019
PHOTO: Go-Jek

Our country’s hope of having multiple ride-sharing options has taken yet another hit. A report by Philstar.com reveals that the Land Transportation Franchising and Regulatory Board (LTFRB) has rejected the Philippine entry of Go-Jek, an Indonesian ride-hailing service.

The story goes that the company’s plan to expand its services into the Philippines was rejected because Go-Jek did not meet the citizenship requirement. Under Philippine law, foreigners are banned from owning mass-media bodies and more than 40% of companies under certain industries. 

“If they want to appeal, that is their option,” LTFRB chairman Martin Delgra III said about the proceedings.

Last year, Go-Jek announced its intentions to expand into neighboring markets like Vietnam, Thailand, Singapore, and the Philippines, where it would compete directly in the ride-sharing markets of Grab. Like the Singapore-based company, Go-Jek offers other services on top of ride hailing, like grocery shopping and massages.

Angkas, another motorcycle-based ride-hailing service, was also banned from operating last year by the LTFRB. Currently, the Department of Transportation is working on putting together a technical working group to consider the company’s future.

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What do you guys think about Go-Jek’s rejection? Did the LTFRB have a valid reason, or is this yet another blow to the improvement of our daily transport options? Sound off in the comments.

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PHOTO: Go-Jek
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