Market Overview

Uber To Buy Ride-Sharing Technology Firm Autocab As It Looks To Expand UK Reach

Share:

Uber Technologies Inc. (NYSE: UBER) announced Thursday it was purchasing Autocab, a United Kingdom technology firm.

What Happened

The Machester, U.K.-based company supplies software and connects private hire and taxi operators through its iGO marketplace.

Uber will be able to connect its own customers to taxi operators through iGo in those markets where it does not operate, the company said in a statement

The U.K. company would continue to operate independently post-acquisition, and retain its focus on providing technology, to the global taxi and private hire industry, according to Uber.

Why It Matters

The deal is likely to shoot up Uber’s reach in the U.K. from 40 locations to 170, Bloomberg reported. Autocab has presence in 30 countries and the Uber partnership could help the company expand its reach worldwide.

Uber suffered an 80% decline in ridesharing demand due to the pandemic and announced marketing cuts, layoffs, and other fixed cost-saving measures to the tune of $1 billion in the first quarter.

The company is due to release its Q2 earnings on Thursday. The ride-sharing company’s shares have risen 10% in the last week.

Price Action 

Uber shares traded 0.9% higher at $33.50 in the pre-market session Thursday.

Photo by Stock Catalog on Flickr.

 

Related Articles (UBER)

View Comments and Join the Discussion!

Posted-In: Autocab Bloomberg ride-sharingM&A News Global Tech Media