Uber is about to change the game: plans historic acquisition of travel giant Expedia
Uber is considering a takeover of travel site Expedia, which would represent the largest acquisition in its history. This would bring it closer to its goal of becoming the West’s first “super app,” or as its CEO puts it, “the operating system for your life.”
Uber, which has a market value of more than $170 billion, is considering buying Expedia, a travel site valued at about $20 billion. A merger between the two companies could significantly change the travel sector, where Uber already dominates urban transportation, while Expedia focuses on booking vacations and long-haul travel. “The potential acquisition of Expedia represents a strategic move for Uber, which will allow customers to benefit from a wide range of travel services, from booking transportation to booking hotels and flights,” marketing expert Tomas Čupr explained to SZ Byznys.
The move would bring Uber closer to achieving “superapp” status – a digital marketplace that offers users comprehensive services in one place. Uber has already expanded beyond taxis into food delivery, corporate logistics, ticketing and advertising, and according to its CEO, Dara Khosrowshahi, it could “represent an operating system for everyday life.” A potential acquisition would bring Uber much closer to that goal.
On the global stage, Asian apps such as WeChat in China and Grab, which offer a wide range of functions, from messaging to mobile payments and food delivery, are leading players in this regard. According to JPMorgan, the concept of super apps is one of the most debated topics in mobile technology. However, the West is still looking for its own alternative of this magnitude.
The benefits of superapps are many. “They provide customers with convenience and increased confidence in the service, which increases customer loyalty,” says Chupr. He also points out that such platforms offer scope for the development of innovative features such as personalised itineraries or integrated payment systems that make travel easier.
Uber has not yet publicly commented on the potential acquisition. If it does happen, Uber could open the door to a new era for Western digital platforms, to which other players in the market, such as Booking.com or Google, would have to respond.
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