Indonesia’s leading ride-hailing company Go-Jek has filed an application to operate in the Philippines but its entry is currently on hold as the Land Transportation Franchising and Regulatory Board (LTFRB) has already issued a moratorium on the accreditation of transport network companies (TNC).
LTFRB Memorandum Circular 2018-016, which was issued by the LTFRB on August 9, 2018, temporarily suspended the acceptance of all new applications for TNC accreditation to “allow the board to closely monitor the existing TNCs for TNVS and those subject for renewal and/or evaluation.”
Go-Jek applied for accreditation on August 13 – or four days after the issuance of the memorandum. Representatives of Go-Jek had also met with LTFRB officials last May to talk about the possible entry of the company following the sale of Uber’s Southeast Asia operations to Grab.
LTFRB Board Member Aileen Lourdes Lizada said that Go-Jek executives had to review the Philippines’ regulatory rules, such as surge pricing limits. She said that Go-Jek can surge up to 5 times in Indonesia, but can only surge up to 2 times in the Philippines.
On June 11, 2018, the Department of Transportation issued Department Order 2018-013 giving LTFRB full authority to regulate transport network companies (TNC) and transportation network vehicles service (TNVS).
With a limit of 65,000 approved TNVS for accredited TNCs, the LFTRB deemed it necessary to undertake further studies about the effects of the cap or limit, leading to the moratorium on the accreditation of TNCs.
This year so far, six TNCs were accredited, namely Hype Transport Systems, Inc.; GoLag, Inc.; iPara Technologies and Solutions, Inc.; Hirna Mobility Solutions, Inc.; Micab Systems Corporation; and E-Pick Me Up, Inc.
Two TNCs were denied accreditation. These are Out-of-Town Cars Corporation and Mober Technology PTE Ltd.
TNCs with pending Extensions of Validity for Accreditation are Grab Philippines (MyTaxi.ph) and U-HOP Transportation Network Vehicle System, Inc.
Five TNCs have their applications pending for resolution or evaluation of the Pre-Accreditation Committee. These are: Ryde Global, Inc.; Citimuber Corporation; Aztech Solution International Corporation; Unified Transport Operations League (UTOL) SMESOFT, Inc.; and iHitchOnline, Inc.