Uber is reportedly exploring the possibility of acquiring travel booking giant Expedia, a move that could significantly diversify its portfolio beyond traditional ride-hailing and food delivery services.
Sources familiar with the negotiations indicate that discussions are still in the early stages, and it remains uncertain whether a formal acquisition will occur.
This potential acquisition is particularly relevant for Uber’s CEO, Dara Khosrowshahi, who previously led Expedia from 2005 to 2017 and still holds a non-executive board position with the company.
Uber, with a current market capitalization of approximately $168 billion, has seen its stock soar over 80% in the past year, marking a robust recovery from a challenging 2022, which was impacted by rising fuel costs and inflation.
The surge in demand for ride-hailing services and the growth of Uber Eats have significantly contributed to this turnaround.
A potential Expedia acquisition could position Uber as a leading super app in travel.Expedia, valued at around $20 billion, faces stiff competition from other travel platforms like Booking.com and Airbnb, which has kept its stock below 2022 highs.
Despite this, the company reported impressive figures, with total gross bookings reaching $28.8 billion in its second quarter.
Industry analysts suggest that an acquisition of Expedia would represent a significant strategic advantage for Uber, positioning it as a comprehensive travel and services provider, or a “super app.”
Dan Ives, managing partner at Wedbush Securities, noted that this indicates Uber is aggressively pursuing new avenues for growth and revenue generation.
Both Uber and Expedia have not commented on the ongoing discussions, leaving the future of this potential acquisition uncertain.
However, should it materialize, it could reshape the competitive landscape of both the ride-hailing and travel industries.