April 5, 2021
The Competition and Markets Authority (CMA) announced recently that no competition concerns were found following a thorough investigation into the Uber/Autocab’s deal. This gives Uber the green light to go on with its take over of taxi tech firm Autocab. Recall that the Competition and Markets Authority (CMA) opened a phase one investigation into the merger in January to examine how the deal could harm the private hire vehicle market. While the regulator probed whether the tie-up would harm competition in the market, in its conclusion, it agreed that there was only limited indirect competition between Uber and Autocab.
Not only that, the investigation also considers whether the combined company could put Uber’s rivals at a disadvantage by reducing the quality of software sold to them or by forcing them to own. In its reports, CMA agreed that there were other credible software booking providers and referral services that users could switch to. Also, CMA did not find evidence that Autocab which supplies booking and dispatch technology software to taxi firms and also owns referral network iGo was likely to become a more direct competitor to Uber in the future.
For more information, read the original story in City A.M
