Taipei: The Fair Trade Commission on Wednesday approved the acquisition of Taiwanese taxi company Crown Taxi by the Taiwan subsidiary of U.S.-based Uber Technologies, Inc. The commission confirmed that the two companies had previously been in a partnership, and the merger is not anticipated to significantly alter their market share in the taxi dispatching service sector.

According to Focus Taiwan, the commission’s press release highlighted that Taiwan’s taxi market is composed of several competitors, including Taiwan Taxi Co., Ltd., Line GO, yoxi, and Europe-based Bolt, which is scheduled to launch its services in Taiwan in 2025. The assessment by the commission determined that Uber would not present significant competition restriction risks, such as raising fares unilaterally, engaging in price-fixing with other companies, or creating market entry barriers.

The commission further explained that the merger would promote business integration and reduce administrative layers, which is expected to enhance operational efficiency. The assessment categorized the deal as a horizontal merger since both Uber and Crown Taxi provide taxi dispatch services. Additionally, it noted a vertical merger aspect, as Uber supplies the dispatching system used by Crown Taxi’s drivers.