The CMA announced today that it has cleared Uber’s
purchase of Autocab, following a Phase 1 merger investigation.
The CMA (Competition and Markets Authority) opened its Phase 1
merger investigation into ride-hailing company Uber’s acquisition
of GPC Software Limited (Autocab) in January 2021. Autocab
supplies booking and dispatch technology software (BDT) to taxi
companies. It 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.
Joel Bamford, Senior Director of Mergers said:
Millions of people across the UK rely on taxis every day and
technology has transformed the way this industry works. It is
therefore important that mergers like these are properly
scrutinised to ensure that customers aren’t negatively
affected.
After a thorough investigation, the CMA has found no
competition concerns as a result of this deal. This is because
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.
Further information relating to the investigation is available on
the case page.
Notes to editors
- Autocab develops and supplies two main types of software to
taxi companies in connection with taxi services. This includes
(i) booking and dispatch technology enabling taxi companies to
connect drivers to end customers and (ii) the iGo network (iGo)
which connects demand for taxi trips with taxi companies that can
supply the services. Taxi companies use iGo when demand arises
for services outside their own service area or when their
customer demand exceeds the number of drivers they have
available. Other companies, such as travel and emergency
transportation companies, use iGo because they themselves do not
supply taxi services but have customers who require such
services.