Uber made a big announcement on August 2020, when they revealed that they are going t overtake Autocab which is a British Company who provides online taxi-booking services. In the latest developments, the UK’s competition regulator has said that it would test the planned deal and its influence upon the commercial landscape. The Competition Markets Authority made it clear that it is their responsibility to oversee whether this deal will establish Uber as a market monopoly reducing the competition.
Autocab, which has given taxi facilities since 1991, built the iGo everywhere platform as a competitor to Uber and Lyft. The cloud-based scheduling platform enabled local taxi firms to place their logo on an Autocab-made app, and market their services just like a ride-sharing service. We profiled Autocab in 2017, and the company made it obvious that its aim was to create a UK-wide network of local taxi firms.
Back in August 2020, Uber made their intentions clear of expanding their presence throughout UK. This deal was about to be the foundation of their plan. By taking iGomarket place under their control, Uber would be able to connect local operators with the riders who are doing the bookings. In return, it is possible for these local members to make use of the revenue opportunities on Uber platform.
Uber has made it clear that they are going to continue independently with their brand. They stated that they want to further develop the private hire industry throughout the world. The bottom line is that with this deal, iGo network referred to as the marketplace would be turned into Uber’s.CMA has already started their research and their mailbox has opened for the public to comment. Public can decide whether the CMA should go ahead with the research or not. The deadline to submit your opinion is March 26th 2021.