The United Kingdom’s Competition and Markets Authority today said that it’s launching an inquiry into Uber Technologies Inc.’s proposed acquisition of software-as-a-service provider Autocab.

The proposed acquisition is part of Uber’s ongoing efforts to expand its revenue base beyond its core ride-hailing app. 

Autocab, incorporated as GPC Computer Software Ltd., sells cloud services that help taxi and private-hire vehicle companies run their business. The U.K.-based firm provides a popular dispatching system for managing rides, along with related products that help with tasks such as assessing fleet efficiency. Autocab also operates a ride booking marketplace called iGo that enables taxi and private-hire companies to reach new customers.

Uber announced plans to acquire Autocab in August, a day before its second-quarter earnings report. The company said at the time that Autocab’s iGo network would enable it to provide rides for customers in areas where it currently doesn’t have a significant presence.

The Competition and Markets Authority’s inquiry will seek to establish if the acquisition may reduce market competition in the U.K. “The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the watchdog stated today.

Members of the public can submit feedback on the matter until Feb. 12. The CMA plans to decide by March 26 whether or not to turn the inquiry into a broader “Phase 2” investigation.

In a statement to TechCrunch, an Uber spokesperson said that “we are cooperating fully with the U.K. Competition and Market Authority’s inquiry to ensure it can conclude its review as quickly as possible. We are confident that this acquisition is positive for consumers, will help local operators grow and provide drivers with genuine earning opportunities.”

Shortly before announcing plans to acquire Autocab, Uber bought Routematch Inc., another software-as-a-service firm focused on helping public transit agencies manage their operations. Uber’s efforts to become a supplier of software to other transportation providers is part of a broader strategy to create new revenue streams beyond ride-hailing. The company is also investing in the freight market as part of the strategy: Its Uber Freight unit raised $500 million in October.

Photo: Uber