Uber takes on Autocab

Uber has bought UK based Autocab, which is active in 20 countries, with the aim of expanding its own platform by linking users who open its app in places where it doesn’t offer trips.

Uber’s spokeswoman said it plans to support Autocab’s expansion of SaaS and iGo internationally — suggesting the tech giant hopes to be able to integrate the marketplace across its own global footprint in order to be able to offer users a less patchy service.

The move also looks intended to create more opportunities for Uber drivers to pick up jobs from outside its own platform, including delivery work.

Uber stated in a press release “thousands of people” open its app every month in places where they can’t get a trip. It lists 15 UK towns which fall into this category — Oxford (67,099 app opens monthly) and Tunbridge Wells (46,150); or at the other end Colchester (16,540) and Ipswich (16,539). 

“Through Autocab’s iGo marketplace, Uber will be able to connect these riders with local operators who
choose to take the booking. In turn, operators should be able to expand their operations and offer more earning opportunities to local drivers. Uber will also explore providing drivers with additional revenue opportunities related to its platform for other services, such as delivery.” 

It is rumoured that Uber won't be integrating Autocab into markets where Uber is already active. Thereby showing that the purchase of Autocab is probably to decrease local competition. 

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