Uber is reportedly exploring the possibility of acquiring Expedia, a leading global travel booking company valued at approximately $20 billion. According to the Financial Times, discussions regarding this significant potential acquisition are still in the early stages, and Uber has yet to make a formal offer to Expedia.
The acquisition, if successful, would mark Uber’s largest purchase to date. While no official negotiations are underway, the ride-hailing giant is currently working with advisers to evaluate the feasibility of the deal and how it could be structured. The discussions were reportedly initiated by a third party, rather than Uber’s CEO, Dara Khosrowshahi, who previously led Expedia before joining Uber in 2017. Notably, Khosrowshahi remains on Expedia’s Board of Directors, which may complicate his involvement in any potential negotiations.
Uber has long harbored ambitions to evolve into a broader travel booking platform. Khosrowshahi has often articulated a vision for Uber to become the “Amazon of transportation.” To that end, the company has made strides in integrating various travel services, including train, bus, and flight bookings in select markets. Past acquisitions, such as the $2.65 billion purchase of Postmates and the $1.1 billion acquisition of Drizly (the latter later shut down), indicate Uber’s strategy to diversify its offerings. Additionally, collaborations with companies like Waymo and Cruise to provide autonomous rides further emphasize its commitment to expanding its service portfolio.
The timing of these exploratory discussions could align with Uber’s recent financial successes; the company reported profitability for the first time in 2023, bolstered by a resurgence in demand for rides and food delivery services. This newfound financial stability positions Uber favorably for pursuing a significant acquisition like Expedia.
For more information on this developing story, visit Engadget. As Uber continues to navigate its path toward becoming a comprehensive travel service, the potential acquisition of Expedia could significantly impact both companies and their respective markets.