Uber is reportedly considering the acquisition of Expedia, a major global travel booking company, as reported by the Financial Times. If completed, this acquisition would be Uber’s largest, given Expedia’s valuation of $20 billion and record annual revenue in 2023. However, discussions are still at an early stage, with Uber yet to make a formal offer. The company is currently evaluating the potential implications of such an acquisition and has been consulting advisers over recent months to assess the feasibility and structure of the deal.
Dara Khosrowshahi, Uber’s CEO, might need to abstain from the discussions, due to his previous role as CEO of Expedia before joining Uber in 2017. Although still a member of Expedia’s Board of Directors, Khosrowshahi was reportedly not the originator of the acquisition idea; the Times noted that a third party proposed the possibility.
Uber has been aiming to expand into a broader travel booking platform for some time. Khosrowshahi has expressed aspirations for Uber to become the “Amazon of transportation.” Since his appointment, Uber has introduced train, bus, and flight bookings in certain markets and executed several major acquisitions, including the purchase of Postmates for $2.65 billion and Drizly for $1.1 billion (though Drizly was shut down three years post-acquisition). Additionally, Uber has partnered with Waymo and Cruise to provide autonomous rides in select areas. According to the Times, Uber achieved profitability for the first time in 2023, driven by increased demand for its ride and food delivery services, potentially placing it in a favorable position to acquire a company of Expedia’s magnitude.