Indonesian ride-hailing app to enter PH market
Indonesia-based Go-Jek has signified its interest to operate in the Philippines as a transportation network company, an official of the Land Transportation Franchising and Regulatory Board said.
LTFRB board member Aileen Lizada said Go-Jek, which has 250,000 active TNVS units in Indonesia, intends to enter all cities in the country that have taxi services.
Lizada, however, said the agency wants to make sure the local players will be protected upon Go Jek?s entry considering the Indonesian firm is a big company.
Go-Jek?s interest in entering the Philippine market followed Uber?s exit from the country to the dismay of the riding public that has complained of higher fares, longer waiting time and selective drivers.
The Indonesian ride hailing startup can impose price surges up to five times more than the normal fare as there is no rule preventing Go-Jek from doing so.
Lizada informed the officials of Go-Jek that the LTFRB only allows a price surge cap twice the normal rate.
Go-Jek, backed by private equity firms KKR & Co LP and Warburg Pincus LLC, was established in 2010 as a motorcycle ride-hailing service. It then evolved into an on-demand mobile platform, providing transportation, logistics, mobile payments, and food delivery, among others. (PNA)