Uber’s acquisition of Autocab is seen by UK competition regulator – Heaven32

Uber’s plan to acquire Autocab, a maker of SaaS for reservation and dispatch software for the taxi and private rental vehicle industry that also taps a global travel market for taxis and PHVs (Yo voy), is under review by the UK competition watchdog, which announced the launch of an investigation today.

The deadline for a decision by the Competition and Markets Authority (CMA) on whether to refer the merger for further investigation is March 26.

Uber announced plans to acquire UK-based Autocab last August.

Competitive considerations could arise if Uber, a ridesharing provider that competes with traditional taxis and private car rental companies for its customers, closes Autocab’s alternative travel booking market or shuts it down in selective markets. where it operates its own private transport service. for example.

Although at the time of announcing the acquisition, Uber had announced its intention to support Autocab’s SaaS and iGo expansion internationally. The The move also appears intended to create more opportunities for Uber drivers to secure jobs outside of their own platform, including delivery jobs, as ridesharing has faced a reduction in demand during the shift. Uber pandemic. COVID-19.

However, the overlap between Autocab’s iGo market and Uber’s main travel service certainly raises questions about the risks to the competition.

The CMA has opened an invitation to comment on the merger, with a deadline for submissions of February 12.

“The CMA is examining whether it is or may be the case that this transaction, if completed, will result in the creation of a relevant merger situation under the merger provisions of the Companies Act 2002 and, if so so, if the creation of such a situation can be expected to result in a substantial lessening of competition in any market or markets in the UK for goods or services, ”he wrote, adding: “To help you with this assessment, the CMA invites any interested party to comment on the transaction. “