LTFRB Rejects Indonesia's Go-Jek Bid to Operate in PH via Local Subsidiary

Go-Jek

For failure to pass nationality requirements in the country's foreign ownership laws, the Land Transportation Franchising and Regulatory Board (LTFRB) denied the application of Velox Technology Philippines, Inc. to operate as a Transport Network Company (TNC) in the Philippines

Velox Philippines is a local subsidiary of Indonesian ride-hailing service Go-Jek.

The LTFRB decision was pursuant to Article XII, Section 11 of the 1987 Philippine Constitution, which states that no franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted to corporations or associations that are not at least 60 percent Filipino-owned.

The Pre-Accreditation Committee of the LTFRB observed that based on the Deed of Absolute Sale of Shares of Stock, only 20.4 percent of the 1.2 billion common shares of Velox Philippines’ parent company, Velox South-East Asia Holdings Pte. Ltd. (Velox SEA), was actually sold to local shareholder Pace Crimson Ventures Corporation (PCVC).

Further, based on LTFRB Resolution No. 2019-015, Velox Philippines also failed to present necessary documents such as Proof of Payment Capital Gains Tax (CGT) and Proof of Payment of Subscribed Shares allegedly subscribed by its shareholder, PCVC.

LTFRB Chairman Martin Delgra III maintained that the Board simply affirmed the Pre-Accreditation Committee's resolution denying the application of Velox Philippines.

"We need to follow the 60-40 requirement of the law for TNCs to operate in the country. Kailangan po natin sumunod sa batas," Delgra said.

Additionally, Undersecretary for Road Transport and Infrastructure Mark Richmund De Leon pointed out that the Department of Transportation (DOTr) has not taken any part in the accreditation process of Velox Philippines, emphasizing it is well within the mandate of the LTFRB to solely decide on such matters.

"The DOTr does not intervene with the decision of the LTFRB during that phase of deliberation. If Velox Philippines wishes to appeal, they can do so before the DOTr, through the Franchising Review Staff," De Leon said.

De Leon added that the DOTr and its sectoral and attached agencies continue to abide by the tenets of transparency and accountability, as espoused by Secretary Arthur Tugade, in vital government dealings such as TNC accreditation that involve the safety and security of Filipino commuters."

"Para po kay Secretary Tugade at sa buong hanay ng DOTr, pinakamahalaga po ang buhay at kaligtasan ng ating mga pasahero. Kaya tinitiyak po natin, kasama ang ating mga attached agency, na tumatalima tayo sa batas at mga regulasyon upang matiyak ang pananagutan para sa ating mga commuter," De Leon added.

Go-Jek

Read All

Featured Articles

Recommended Articles For You

Read All

Car Articles From Zigwheels

  • News
  • Article Feature
  • Advisory Stories
  • Road Test
  • ACMobility guarantees worry-free electrified mobility EV models, charging hubs
    ACMobility guarantees worry-free electrified mobility EV models, charging hubs
    Ruben Manahan IV . Mar 28, 2024
  • LTO announces DL renewal schedule, to commence after Holy Week
    LTO announces DL renewal schedule, to commence after Holy Week
    Paulo Papa . Mar 28, 2024
  • GAC Motor PH to reveal Emkoo Hybrid
    GAC Motor PH to reveal Emkoo Hybrid
    Ruben Manahan IV . Mar 27, 2024
  • Toyota PH offers emergency roadside assistance for Lenten season anew
    Toyota PH offers emergency roadside assistance for Lenten season anew
    Paulo Papa . Mar 27, 2024
  • Honda Cars PH reactivates HEAT for Holy Week
    Honda Cars PH reactivates HEAT for Holy Week
    Paulo Papa . Mar 27, 2024
  • Brembo: an ideal choice for discerning Filipino car owners
    Brembo: an ideal choice for discerning Filipino car owners
    Paulo Papa . Mar 26, 2024
  • Flyweight feud: Suzuki S-Presso AGS vs. Honda Brio V CVT
    Flyweight feud: Suzuki S-Presso AGS vs. Honda Brio V CVT
    Paulo Papa . Mar 20, 2024
  • Cabin check: What’s inside the BYD Atto 3
    Cabin check: What’s inside the BYD Atto 3
    Paulo Papa . Mar 19, 2024
  • Midsize SUV battle: Hyundai Santa Fe vs. Ford Everest
    Midsize SUV battle: Hyundai Santa Fe vs. Ford Everest
    Paulo Papa . Mar 14, 2024
  • Hyundai Santa Fe: 6 seductive colors
    Hyundai Santa Fe: 6 seductive colors
    Paulo Papa . Mar 12, 2024
  • Here are some ideal destinations and safety tips for the upcoming Holy Week
    Here are some ideal destinations and safety tips for the upcoming Holy Week
    Paulo Papa . Mar 08, 2024
  • Here are some New Year’s resolutions for car owners
    Here are some New Year’s resolutions for car owners
    Paulo Papa . Jan 03, 2024
  • PH auto market: 2023 in retrospect
    PH auto market: 2023 in retrospect
    Paulo Papa . Dec 15, 2023
  • Here’s a holiday gift guide for car enthusiasts
    Here’s a holiday gift guide for car enthusiasts
    Hazel Nicole Carreon . Dec 15, 2023
  • Oil players cut pump prices anew
    Oil players cut pump prices anew
    Paulo Papa . Nov 14, 2023
  • First look: JMC Grand Avenue
    First look: JMC Grand Avenue
    Paulo Papa . Mar 27, 2024
  • Above average: Toyota Raize G
    Above average: Toyota Raize G
    Paulo Papa . Mar 22, 2024
  • BYD Atto 3: from the metro to the mountains
    BYD Atto 3: from the metro to the mountains
    Paulo Papa . Mar 18, 2024
  • Late bloomer: Hyundai Stargazer GLS Premium
    Late bloomer: Hyundai Stargazer GLS Premium
    Ruben Manahan IV . Mar 08, 2024
  • Adventure-ready: Subaru Crosstrek
    Adventure-ready: Subaru Crosstrek
    Paulo Papa . Mar 01, 2024