New transportation licensing moratorium hampers Go-Jek’s expansion plan to the Philippines | Digital Asia
Digital Asia News Update
The moratorium was made official only four days before Go-Jek submitted the application for operational license
The Land Transportation Franchising and Regulatory Board (LTFRB), as part of the Ministry of Transportation in the Philippines, announced on Thursday that regulatory barrier may hamper the expansion plan of Indonesian ride-hailing giant Go-Jek to the country.
This is due to the government’s recent moratorium on new on-demand transportation operational license.
LTFRB Chairman Martin B. Delgra explained that Go-Jek’s bid had only been submitted on August 13 (through the establishment of Velox Technology Philippines, Inc) when the LTFRB Memorandum Circular (MC) 2018-016 has been ratified by council members on August 9.
The memorandum forbids the government to issue new operational licensing for Transport Network Vehicle Service (TNVS).
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The moratorium was meant to help the government in monitoring app-based transportation services in its territory.
Plenty of operators in the country have secured operational licenses from the government, such as Hype Transport Systems, Inc.; GoLag, Inc.; iPara Technologies and Solutions, Inc. (Owto); E-Pick Me Up, Inc.; Hirna Mobility Solutions, Inc.; and Micab Systems Corp.
For Grab (registered as local company MyTaxi.Ph, Inc.) and U-Hop Transportation Network Vehicle System, Inc., which have entered the market prior to Go-Jek, the status of their license renewal remains pending.
There is still no certainty on what will happen to their operations in the country.
It is also said that several other players are still waiting for evaluation for securing their operational licenses.
The article Moratorium Perizinan Transportasi On-Demand Baru di Filipina Ganggu Ekspansi GO-JEK was written in Bahasa Indonesia by Randi Eka Yonida for DailySocial. English translation and editing by Tech News.