Indonesia’s Go-Jek won’t let foreign ownership issues hinder its plan to operate a business in the Philippines.
Go-Jek is a major ride-hailing platform based in Indonesia. It was launched in 2011 and has attracted the attention of more than 5 million Indonesian locals. More than 6 million transactions are processed each month.
Local Indonesian, Nadiem Makarim established the nation’s motorcycle ride-hailing phone service in 2010. Since then, Go-Jek transformed into an on-demand mobile platform. As a revolutionary app, it offers broad coverage for services such as logistics, food delivery, mobile payments, transportation, and other needed services.
The ride-hailing company currently conducts business in 50 Indonesian cities including Bali, Jakarta, Surabaya, and Bandar Lampung to name a few. More cities will be able to take advantage of the services in the coming years. Unfortunately, the Philippines Land Transportation Franchising and Regulatory Board (LTFRB) rejected Velox Technology Philippines’ (Go-Jek’s subsidiary) application to operate a ride-hailing service in Manila.
LTFRB Chairman Martin Delgra noted that the said subsidiary was not able to conform with the citizenship requirement. She added that the application was not certified based on their regulations.
Go-Jek won’t give up on the Philippine market just like that because of its foreign ownership issues. It announced on Jan. 18 its partnership with the country’s local crypto wallet and payments platform, Coins.ph. The Indonesian company made a “substantial investment” in the Financial Technology (FinTech) start-up where it acquired a majority stake. The business deal amounted to $72 million which is the biggest to date.
Coins.ph was launched in 2014 and has drawn $10 million from stakeholders through two ventures and two Series A funding rounds. Users of the platform can receive, send, and purchase using 4 major cryptocurrencies – Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Ripple (XRP). The startup firm began to roll out beta access to its crypto exchange Coins Pro.
Co-founder and Coins.ph CEO Ron Hose said, “We are very proud to showcase the success of Philippine startups. In just a few years, our team has been able to build a scalable service extending financial services to millions of Filipinos.”
Hose also noted that the crypto wallet is poised to begin new funding round. This will become possible once the Indonesian giant’s payments unit Go-Pay presented an opportunity for partnership.
According to Go-Pay CEP Aldi Haryopratomo, there is a big possibility for Go-Pay to deliver better access to important financial services in the Philippines through the integration of its scalability, technological expertise as well as experience in Indonesia with Coins.ph’s profound local expertise aside from robust customer loyalty.