Uber Reportedly Weighs Expedia Acquisition
Uber has reportedly considered acquiring Expedia to strengthen its ongoing diversification.
That’s according to a report Wednesday (Oct. 16) by the Financial Times (FT) which notes that purchasing the $19 billion travel booking website would mark Uber’s largest acquisition ever.
Sources told the FT that Uber had spoken to advisors about the feasibility of the deal recently after a third party had floated the idea of an Expedia acquisition.
The discussions centered in part on Uber CEO Dara Khosrowshahi. He was Expedia’s chief executive from 2005 to 2017 and has a seat on that company’s board, making it likely that an approach would be friendly and that Khosrowshahi would recuse himself from discussions.
Uber’s interest is still in the early stages, and no formal approach has been made to Expedia, the sources added.
PYMNTS has contacted Uber for comment but has not yet gotten a reply.
The FT report points out that this is happening after years of Uber moving beyond its roots as a ride-hailing company into areas such as flight and train bookings, food delivery and logistics, all in an effort to become a “super app.”
“Anywhere you want to go in your city and anything that you want to get, we want to empower you to do so,” Khosrowshahi told the FT recently.
Research by PYMNTS Intelligence has shown consumers feel positively about the idea of a super app, with 79% interested in an everyday app (“a single online app or website that allows users to connect and coordinate activities in one online space”), and 70% of that group want the option to shop for retail products using such a platform.
“Having all their shopping needs in one app saves consumers time and effort,” PYMNTS wrote. “They don’t need to switch between multiple apps or websites to find what they’re looking for. A unified app can offer a seamless shopping experience with consistent navigation and design, making it easier for consumers to browse, compare, and purchase products.”
In addition, by aggregating data from a range of different retailers, a unified app can offer personalized recommendations based on the user’s shopping history and preferences, strengthening the overall shopping experience.
The same study found that consumers in the U.S. and Australia would use that sort of app for managing their finances.
“In both countries, apps are already being deployed to manage an array of activities, with banking apps being the most popular,” PYMNTS wrote in April. “In a typical month, 64% of U.S. consumers and 78% of those in Australia use apps to manage their banking. More than half of respondents in each country also use mobile apps to track spending and shop for groceries.”
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