Uber cleared to take over Autocab
After raising initial concerns, Uber’s Autocab takeover cleared by UK’s competition watchdog
The British competition watchdog has cleared Uber’s takeover of UK tech firm Autocab after an initial probe. The probe found that the deal would not affect competition in the Country's taxi booking and dispatch software market.
An investigation into the deal was initiated in January by the Competition and Markets Authority (CMA) on the possible effects on the supply of dispatch software referral networks – one of the key services of Autocab; and the potential merger of Autocab’s customers.
The CMA found that there was "only limited indirect competition" between the two companies.
"...the companies are not close competitors, the two businesses will continue to face competition from rivals and Autocab's customer taxi companies can switch to credible alternative providers if they wish," said Joel Bamford, senior director of mergers at the CMA.
Uber had bought Autocab for an undisclosed amount on August 20, which would allow it to link people in locations where Uber services were inaccessible.
The new tool is expected to be rolled out by Uber in Britain before it expands into other countries.
Autocab welcomed the CMA's decision. "By working with Uber, we can scale up our ambitions," a representative said in an emailed statement. Uber chimed-in with similar plans.
"We look forward to working with the Autocab team to help local operators grow and provide drivers with genuine earnings opportunities," an Uber spokeswoman said.