Uber complete purchase of taxi and private hire software firm Autocab following CMA clearance
Uber has now completed the purchase of taxi and private hire software firm Autocab following CMA clearance.
On 29 March the Competition and Markets Authority (CMA) announced that it had cleared Uber’s purchase of Autocab, following a merger investigation. Yesterday the deal between Uber and Autocab was finally completed.
The CMA opened its Phase 1 merger investigation into ride-hailing company Uber’s acquisition of GPC Software Limited (Autocab) in January 2021. The investigation found Autocab to be a supplier of booking and dispatch technology software (BDT) to taxi companies. Autocab also operates a referral network for taxi and private hire operators called iGo, where those companies can send and receive jobs to each other.
The investigation considered the deal’s possible effect on competition in the supply of BDT, as well as referral networks, and any potential impact of the merger on taxi companies who are Autocab’s current BDT customers. After thorough scrutiny, the CMA has found that there is only limited indirect competition between Uber and Autocab, and the CMA did not find evidence to indicate that Autocab was likely to become a significant and more direct competitor to Uber in the future.
The CMA also considered whether Autocab and Uber could try to put Autocab’s taxi company customers that compete against Uber at a disadvantage by reducing the quality of the BDT software sold to them, or by forcing them to pass on data to Uber. However, the CMA found that there are other credible suppliers of BDT and referral networks that these taxi companies could switch to if Uber were to reduce the quality of the Autocab service or force them to share their data.
A spokesperson from Autocab said: “Thrilled to announce that Uber has purchased Autocab.
“We look forward to delivering on our promise to continue creating best-in-class booking & dispatch software and providing hundreds of thousands of additional trips for our customers – helping cement the place of licensed operators in their local community.”
Talking in an exclusive interview with TaxiPoint, Jamie Heywood, Uber’s Regional General Manager for Northern and Eastern Europe, said: “I am delighted that the CMA has approved our acquisition of Autocab.
“Every month thousands of people open the Uber app in places the company doesn’t operate to try to get a trip. Through Autocab’s iGo marketplace, Uber will be able to connect these riders with local operators who choose to take their booking. In turn, operators should be able to expand their operations and offer more earnings opportunities to local drivers.
“Autocab has worked successfully with taxi and private hire operators around the world for more than thirty years and Uber has a lot to learn from their experience.”
