Back in August last year, Uber announced its intention to acquire Autocab, the UK taxi technology company. Autocab provides private hire and taxi operators with technology to run their business, including booking and dispatch software, and also connects them with trips through their iGo marketplace.
Reason behind acquisition
According to Uber, the reason behind the acquisition is to offer rides to customers in areas that it did not previously cover. Furthermore, the company said that it would explore providing drivers with additional revenue opportunities related to its platform for other services, such as delivery.
However, in a recent move, UK’s competition watchdog has launched an investigation into Uber’s Autocab acquisition considering its effect on competitions.
“The CMA is considering whether it is or may be the case that this transaction if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The Competition and Markets Authority (CMA) has until March 26 to decide whether to clear the deal or enter into a more in-depth investigation.
Commenting on the inquiry in a statement, an Uber spokeswoman said: “We are cooperating fully with the UK Competition and Market Authority’s inquiry to ensure it can conclude its review as quickly as possible. We are confident that this acquisition is positive for consumers, will help local operators grow and provide drivers with genuine earning opportunities.”
According to Safa Alkateb, CEO of Autocab, Post-acquisition, Autocab will remain independent with its board focussed exclusively on providing technology to the taxi and private hire industry, around the world.
Founded by Falah Abod, Autocab’s cloud-based SaaS solutions help power over 1000 companies across the world. Headquartered in Manchester, the company operates in 34 countries around the world. The company also operates iGo network and marketplace – the largest network of independent ground transportation operators in the world.