Home Listed Tech ACCC green light for Cabcharge acquisition of MTI
ACCC green light for Cabcharge acquisition of MTI Featured

The competition watchdog, the ACCC, is not opposing the proposed $6.6 million acquisition of taxi dispatch systems company Mobile Technologies international by Cabcharge Australia.

The Australian Competition and Consumer Commission says, after an investigation, that it was unlikely the acquisition would result in Cabcharge (ASX:CAB) supplying inferior dispatch systems or withholding technology features from rival networks.

MTI is the most widely used provider of taxi dispatch systems to taxi networks in Australia.

“Alternative dispatch system providers are available in Australia and the threat of network switching is likely to provide sufficient constraint on Cabcharge,” ACCC chair Rod Sims said.

The ACCC also investigated concerns that Cabcharge could put rivals at a competitive disadvantage by accessing the dispatch data of competing networks through the MTI system.

“Cabcharge is unlikely to be able to substantially lessen competition through any use of the data. Because of the threat of networks switching to alternative providers, we consider Cabcharge is unlikely to use the data to harm its competitors,” Sims said.

“It is unlikely that Cabcharge would engage in anti-competitive bundling, as this would risk degrading its payment processing business. Further, drivers generally have another payment terminal available in their vehicles.”

Commenting on the ACCC'S decision, Cabcharge chief executive Andrew Skelton said: “Combining our world class customer facing andpayments technologies with MTI’s leading dispatch services creates a workforce with deep industry knowledge and global reach.

"Co-ordinating software architecture across the range of technologies offered by taxi networks to passengers and drivers accelerates our mission to remove friction and deliver seamless solutions that enable established taxi networks to meet and exceed the expectations of their passengers and drivers now and into the future.

"Together, MTI and Cabcharge are looking forward to providing local taxi networks withaccess to a well resourced and globally scaled technology offering.”

The two companies said in a joint statement that under the deal, MTI would continue with its existing leadership structure, including co-founder Matthew Bellizia,and operate as a subisidary of Cabcharge, enabling MTI to provide systems and service to each of its customers "equally and fairly".

"The synergies available in the combined firm will be channelled into fast tracking the delivery of new features and upgrades for MTI customers," they said.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

 

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