Uber is reportedly exploring the acquisition of Expedia, a leading player in the global travel booking industry, as per a recent report by the Financial Times. With Expedia valued at approximately $20 billion and having achieved its highest-ever annual revenue in 2023, this potential acquisition could mark a significant milestone for Uber, should the deal materialize.
While the discussions are in their infancy, sources indicate that Uber has yet to make a formal offer for Expedia. The company is currently assessing the feasibility of the acquisition and working with advisers to determine the best way to structure such a deal. As Uber’s CEO, Dara Khosrowshahi, has a notable history with Expedia—having served as its CEO before joining Uber in 2017—it is likely he may have to recuse himself from discussions. Interestingly, Khosrowshahi remains on Expedia’s Board of Directors, but the impetus for the acquisition appears to have originated from a third party, not him.
Uber has long expressed ambitions to transform into a comprehensive travel booking platform. Khosrowshahi has envisioned Uber as the “Amazon of transportation” since his arrival at the company. In line with this vision, Uber has diversified its services by incorporating train, bus, and flight bookings in select markets, along with previous significant acquisitions such as Postmates for $2.65 billion and Drizly for $1.1 billion, although Drizly was later shut down.
With Uber achieving profitability for the first time in 2023, fueled by increased demand for rides and food delivery, the company may find itself in a favorable position to pursue a major acquisition like Expedia. The move could enable Uber to bolster its presence in the travel sector, creating a more integrated platform for users seeking comprehensive transportation solutions.
For more information on this developing story, check out the full article on https://www.engadget.com/big-tech/uber-is-reportedly-exploring-an-expedia-takeover-120038754.html.
As discussions unfold, the potential merger could reshape the travel landscape, positioning Uber as a formidable player in both ride-hailing and travel bookings.
