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UK To Probe Uber’s Autocab Deal

By  |  January 31, 2021

Uber’s planned acquisition of Autocab is being investigated by the UK’s Competition and Markets Authority (CMA) for suspected anticompetitive behavior, Reuters reported on Friday, January 29.

The tie-up between Uber and mobility platform Autocab — supplier of Software-as-Service (SaaS) solutions for the ridesharing, taxi, and paratransit industries — has triggered fears that the collaboration could stymie competition in the market for ride-hailing software.  

The CMA is worried that the deal would lead to the end of Autocab’s alternative trip booking marketplace. Uber, however, has announced that it plans to support Autocab’s international expansion and to offer drivers the chance to take jobs outside the platform, including delivery work.

A March 26 deadline has been set to refer the deal for an in-depth probe, and the CMA has also asked stakeholders to weigh in and help with its decision.

“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, per Reuters.

The acquisition, which will extend Uber’s services to people in inaccessible locations, is expected to be rolled out in Britain before expanding into other countries.

Uber said it planned to support Autocab’s expansion of SaaS and iGo internationally. However, questions are being raised about the overlap between Autocab’s iGo marketplace and Uber’s core ridesharing service.

Uber initially made the acquisition deal with Autocab in August, with the goal of giving UK Uber riders access to taxi firms and drivers in areas where the ridesharing giant doesn’t provide service. Uber stated there are “thousands of people” who try to use the app in places where Uber isn’t yet operating.