Uber is reportedly exploring the acquisition of Expedia, one of the world’s largest travel booking platforms. According to a recent report from the Financial Times, this potential takeover is still in its infancy, with Uber yet to make a formal offer for the $20 billion-valued company.
This potential acquisition could mark Uber’s most significant purchase to date. Expedia, which recently reported its highest annual revenue in 2023, could provide Uber with an expansive foothold in the travel industry, aligning with CEO Dara Khosrowshahi’s vision of transforming Uber into a comprehensive travel booking platform. Although discussions are ongoing, Uber is currently assessing the implications of such a deal, working with advisers to determine feasibility and potential deal structures.
Given Khosrowshahi’s previous role as CEO of Expedia before joining Uber in 2017, there may be complications in the negotiation process. Although he remains on Expedia’s Board of Directors, it appears that he was not the one to initiate the discussions about the acquisition; the idea was reportedly raised by a third party.
Uber has long aspired to be the “Amazon of transportation,” and this acquisition would be a strategic step toward that goal. Over the past few years, Uber has expanded its services to include train, bus, and flight bookings in select markets. The company has also made significant acquisitions, such as the $2.65 billion purchase of Postmates and the $1.1 billion acquisition of Drizly, despite the latter’s eventual shutdown three years later.
The ride-hailing service achieved profitability for the first time in 2023, buoyed by a surge in demand for rides and food delivery, which positions it favorably for such a substantial acquisition.
For further details on this developing story, visit Engadget. As Uber continues to navigate the intricacies of this potential deal, the travel and tech industries will undoubtedly be watching closely.