Gojek has made three attempts to enter the Philippines, where Grab controls the majority of the ride-hailing market. Due to Gojek's failure to comply with foreign ownership regulations, the company's previous two applications to conduct business in the country were rejected. The Constitution of the Philippines prohibits foreigners from owning more than 40% of a local business.
Nikkei found documents indicating that Pace Crimson Ventures Corporation has acquired 60% of Velox Technology Philippines, a local subsidiary of Gojek, in accordance with Philippine law's 60/40 ownership rule. Paulo Campos, co-founder and CEO of Zalora, owns 35% of Pace Crimson Ventures. ,'_com-medrectangle-3','ezslot_5',191,,_('div-gpt-ad-_com-medrectangle-3-0');
In an opinion posted on the SEC website, SEC General Counsel Camilo Correa wrote, ""Velox Philippines is thus 60.01% owned by Philippine nationals and thus compliant with foreign ownership limits.""
The Land Transportation Franchising and Regulatory Board (LTFRB) imposed a moratorium on the accreditation of transport network companies (TNC) in September 2018, which caused Gojek's entry to be delayed multiple times. Additionally, Gojek's December 2018 and March 2019 applications were turned down due to its noncompliance with foreign ownership regulations.
Martin Delgra, chairman of the LTRFB, stated, ""We have seen the documents and we have endorsed it to the DOTr (Department of Transportation)."" 300,250],'_com-medrectangle-4','ezslot_6',192,,_('div-gpt-ad-_com-medrectangle-4-0');
DOTr Undersecretary Mark De Leon said, ""Transportation Secretary Arthur Tugade will sign the decision."" He also said that Gojek's application is now in the department's franchise review section.
Gojek, which competes with Grab for dominance of the lucrative Southeast Asian ride-hailing market, is currently engaged in a protracted period of aggressive regional expansion. Its market value exceeds $10 billion. Gojek sees the Philippines, which has a population of more than 100 million people, as an important step in the company's growth and expansion after recently acquiring mobile wallet Coins.ph for $72 million. The ride-hailing company has recently entered Thailand and Singapore, and it has set aside $500 million to enter additional markets.
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