CMA launches inquiry into Uber's Autocab acquisition
By Caoimhe Toman
Date: Friday 29 Jan 2021
(Sharecast News) - Uber's acquisition of Autocab is the subject of the new inquiry by the UK's competition watchdog that was launched on Friday.
Autocab, the maker of SaaS for booking and dispatch software for the taxi and private hire vehicle industry, also operates a global trip marketplace for taxis and PHVs, which has been in Uber's sights since August 2020.
The Competition and Markets Authority has concerns regarding competition with traditional taxis as Uber could shutter Autocab's alternative trip booking marketplace or close it in selective markets where its own ride-hailing service operates.
Uber said it planned to support Autocab's expansion of SaaS and iGo internationally and at the same time provide its drivers with more opportunities to pick up jobs from outside its own platform.
"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 regulator wrote.
"To assist it with this assessment, the CMA invites comments on the transaction from any interested party."
The deadline for a decision by the Competition and Markets Authority (CMA) on whether to refer the merger for an in-depth investigation is March 26.
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