Uber has taken a significant step towards a major expansion in the UK through the acquisition of Autocab, the Manchester-based software company used by 52% of the private hire and taxi market in the UK. The value of deal has not been disclosed but owning Autocab means that Uber will be have user databases and provide transport in areas where it doesn’t yet operate.
Autocab allows private hire and taxi operators to share workloads by cooperating with each other at peak times. The company also owns the linked app iGo, which connects users with local taxi firms. Uber plans to link its own app to iGo, so that when Uber users open their app in an area the U.S. giant doesn’t yet operate in, they will be offered a cab through the iGo network instead.
It’s not clear if Uber intends to take a cut of the fares earned by local cabbies through the iGo app, which is available in 320 locations across the UK, compared to the 26 towns and cities Uber operates in. A source inside Uber is quoted as commenting that the company will need to tread carefully and “ensure everyone benefits”, if it doesn’t want to face a backlash from the companies and drivers that use iGo.
Autocab was founded in Manchester almost 30 years ago now, by Safa Alkateb, who is still the company’s chief executive. It has been a family-owned business until now but employs a staff of 170 and operates in 19 countries in addition to the UK. Uber is the world’s largest taxi-hailing company and has operations that now span 6 continents. The company was founded in San Francisco, where it is also headquartered.
Jamie Heywood, Uber’s general manager from northern and eastern Europe commented on the deal:
“Autocab has worked with taxi and private hire operators around the world for more than 30 years and Uber has a lot to learn from their experience. We look forward to working with the Autocab team to help local operators grow and provide drivers with genuine earnings opportunities.”
52-year-old Mr Alkateb said:
“Working with Uber, we can scale up our ambitions, providing hundreds of thousands of additional trips for our customers, and help to cement the place of licenced operators in their local community.”
Autocab will remain operationally independent from Uber and have its own board whose focus will be “providing technology to the taxi and private hire industry around the world”.