The U.K.’s competition regulator is currently reviewing Uber’s proposed acquisition of Autocab, a company specializing in software as a service (SaaS) for taxi and private-hire vehicle booking and dispatch systems. Autocab also manages a worldwide platform for taxi and PHV bookings, known as iGo, and the inquiry was announced today.

The Competition and Markets Authority (CMA) has set a deadline of March 26 to determine whether to launch a more detailed investigation into the potential merger.

Uber initially revealed its plans to purchase the U.K.-based Autocab last August.

Potential competitive issues could emerge if Uber were to discontinue Autocab’s independent trip-booking platform, or selectively withdraw it from areas where Uber’s own ride-hailing service is available, for instance.

However, Uber stated upon announcing the acquisition that it intends to support the continued growth of Autocab’s SaaS offerings and the iGo platform on an international scale. The acquisition is also designed to provide Uber drivers with increased access to work opportunities beyond the Uber platform, including delivery services, as demand for ride-hailing has decreased during the COVID-19 pandemic. 

Despite this, the similarities between Autocab’s iGo marketplace and Uber’s primary ride service naturally raise concerns regarding potential impacts on competition.

The CMA has issued a call for feedback regarding the merger, with a submission deadline of February 12.

“The CMA is assessing whether the implementation of this transaction could lead to a merger situation as defined by the Enterprise Act 2002, and if so, whether this situation might substantially reduce competition within any relevant U.K. markets for goods or services,” the CMA stated, further adding: “To aid in this evaluation, the CMA welcomes comments from any interested parties regarding the transaction.”

In response to the inquiry, an Uber spokesperson commented: “We are fully collaborating with the UK Competition and Market Authority’s review to facilitate a swift conclusion. We believe this acquisition will benefit consumers, assist local businesses in expanding, and create valuable income opportunities for drivers.”

This article has been updated to include Uber’s statement