Uber Technologies announced on Thursday that it agreed to purchase Autocab, a British tech company. Autocab is a 25-year old tech company from UK that supplies taxi booking and dispatch software systems. It also connects passengers to drivers via its iGo marketplace.
The move will further widen the reach of the American ridesharing services company. Uber mentioned that those who use their app can now be linked to local drivers where the tech company is not yet operating. With this, Uber can expand from 40 locations to 170 locations.
In a statement, the Silicon Valley-based company said, “Every month, thousands of people open the Uber app in places the company doesn’t operate to try to get a trip.”
Now, certain areas not reached by Uber before like Oxford can already use the ridesharing app to book drivers from local car-hires. However, the consolidation of the two companies will not apply to those areas where Uber is already operating, like London.
Uber also said it will give “more earning opportunities” to local operators from taxi and private vehicle-hire firms who rely on software delivered by Autocab.
We are delighted to announce that @Uber has today announced that it has entered into an agreement to acquire UK technology company Autocab.
— Autocab (@autocabgpc) August 6, 2020
The amount of the deal was not disclosed nor arrangement details of the agreement. However, Autocab says that even with the acquisition, the British company “will remain independent.” It says that their own board will still provide technology to service taxi operators and private hire business all over the world.
Furthermore, Autocab said that its “mission has always been to encourage local private hire and taxi operators to transform their businesses, and their CEO believes Uber’s technology can help accelerate Autocab’s global ambition and the growth of their customer’s business.”
“Autocab has worked successfully with taxi and private hire operators around the world for more than thirty years and the company has a lot to learn from experience,” Northern and Eastern European head of Uber, Jamie Heywood, said. The UK-based tech firm claims it has operations in 30 countries, which may be expanded further by Uber.
Uber also plans to consider other sources for the revenue related to its service platform, which could include delivery. Meanwhile, it hasn’t added a new location in the UK since 2016, per the Bloomberg. Moreover, the popular ridesharing app saw 80 percent decline in usage last April as people are self-quarantining at homes.