Autocab, which operates a ride-booking app for independent minicab companies, has access to more than 75,000 vehicles in areas where Uber does not operate.
Uber’s current operation is limited to 40 towns and cities in the UK, reports BBC.
Autocab initially started out as a radio supply business but later developed a cloud-based booking platform called iGo that let independent taxi firms offer online bookings.
The deal is expected to give Uber the opportunity to expand to about 170 towns and cities including Oxford and Doncaster, where Uber said "tens of thousands" of people try to use its app every month.
Uber said Autocab would "remain independent" following the acquisition, and maintain its own board of directors.
However, the companies have not revealed the financial terms of the deal, or explained how Uber will make money from it.