Indonesia-Based Ride-Hailing Service Expresses Interest to Enter PH Market
Go-Jek, a popular ride-hailing service that started in Indonesia in 2010, has officially expressed its interest to enter the Philippine market by meeting recently with the Land Transportation Franchising and Regulatory Board (LTFRB).
Two officials from Go-Jek’s main office in Indonesia met with the board recently–Rohan Monga, COO and Head of International, and Shinto Nugroho, Chief of Public Policy and Government Relations–and introduced the company to the agency. Some of the information shared to the LTFRB by Go-Jek’s officials are that it has around 500,000 transport network vehicle service (TNVS) units in Indonesia with approximately 250,000 operating actively, its surge pricing can go up by as much as five times, and that it plans to enter all cities in the country that has taxi services.
When asked if Go-Jek can survive in the local market where the surge pricing is limited to only times two of the standard fare, the Indonesian company said that it will have to study this first. Likewise, the LTFRB admitted that it will also have to study Go-Jek’s entry into the Philippine market.
“Go jek is big (and) we need to study well as we need to protect the local players,” shared LTFRB member Atty. Aileen Lizada in a statement to the media. “Dapat pag-aralan ng mabuti to protect the local TNCs (taxis and TNVS) kasi may taxi-hailing app din sila (We have to study them thoroughly to protect the local TNCs (taxis and TNVS) because they also have a taxi-hailing app}.”
Following the meeting, the LTFRB will wait for Go-Jek to submit a letter to the board signifying their intention to be accredited as a local TNC.
Atty. Lizada also shared that Hiro, a local company, has also expressed its interest to the board to be accredited as a TNC as well.