Uber announced on August 20 that the company has acquired a Hong Kong-based startup called HKTaxi whose function is similar to that of Uber. In a statement, Uber has revealed that this acquisition will create further earning opportunities for taxi drivers while also providing the riders with greater convenience.

Uber’s experienced and global R&D capabilities have a lot to offer to HKTaxi whereas the start-up could provide Uber with local knowledge, thereby, overall creating a space for growth for both the companies.

HKTaxi uses an app that connects taxi drivers with people requesting a ride. Since the start-up was built locally, it has been adopted by many taxi drivers and riders of the Hong Kong area. The startup launched its services almost eight years ago. The services offered by the app included booking, dispatch, and taxi fare e-payment capabilities. Uber has assured us that this acquisition will not lead to major changes.

Kay Lui, Co-founder of HKTaxi said, “We are proud of our hard work in bringing innovation and better service to taxi drivers and riders across Hong Kong. Today’s deal allows us to continue that mission with an even greater impact. Combining our local know-how and startup spirit with Uber’s global experience will build a better taxi industry for all drivers, riders and industry participants.”

Estyn Chung, General Manager of Uber Hong Kong said, “I am excited to welcome Kay and Maff and the entire HKTaxi team to the Uber Hong Kong team, and look forward to jointly driving the adoption of e-hailing in the city. This is a new phase of HKTaxi’s growth, and it is an honour to partner with them in bringing greater innovation and growth to the taxi industry. When people think of Uber they increasingly think of taxis, and this deal only emphasizes the importance we place in the sector, in both Hong Kong and around the world.”

The ride-hailing major also made it clear that the partnership will not lead to any immediate changes for drivers and riders using the HKTaxi or the Uber app.