The UK’s competition watchdog has launched an investigation into Uber’s anticipated buyout of Autocab.

Uber’s plans to buy rival Autocab were first announced last August.

The Competition and Markets Authority (CMA) is investigating the merger to identify whether or not it would result in a substantial lessening of competition.

The financial details of the deal were not disclosed, but the ride hailing giant did state that Autocab will remain independent.

The company operates a ride-booking cloud-based app called iGo, which allows private hire and minicab companies to offer online bookings and organise dispatches, and is reportedly used by around half of the UK market.

At the moment, Uber is only available in 40 towns and cities in the UK, so this deal will give customers access to an additional 75,000 vehicles in areas where it does not currently operate.

The CMA is expected to decide whether to give the merger a green light, or launch a more in-depth investigation by 26th March.

If the transaction is approved, Uber should be available in approximately 170 towns and cities in the UK - and if there is no Uber car in the area, customers can book a private hire car instead.

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