Uber has reportedly considered making a bid for Expedia, the US travel booking website valued at nearly $20 billion. This potential acquisition would be Uber’s largest to date as it seeks to diversify its business and find new avenues for growth. According to sources familiar with the matter, Uber approached advisers in recent months to explore the feasibility and structure of such a deal after it was suggested by a third party.
One key aspect of Uber’s discussions was the role of its CEO, Dara Khosrowshahi, who previously served as Expedia’s CEO from 2005 to 2017 and currently sits on its board as a non-executive director. Given this connection, any approach from Uber is likely to be friendly, with Khosrowshahi recusing himself from deal discussions.
However, it should be noted that Uber’s interest in acquiring Expedia is still at an early stage and there are no ongoing discussions or formal approaches made yet. Both companies declined to comment on these reports.
Expanding beyond ride-hailing services in recent years, Uber has ventured into various sectors such as train and flight bookings, food delivery, corporate logistics, and advertising. The addition of Expedia’s booking technology could significantly boost these ambitions. Despite facing a slowdown in travel demand due to the pandemic earlier this year, Expedia generated $12.8 billion in revenue for 2023.
Uber’s increased market capitalization of $173 billion following an 85% surge in its stock over the past year has strengthened its M&A capabilities. Notably, this includes acquisitions like Postmates ($2.65 billion), Drizly ($1.1 billion), Transplace ($2.25 billion), Careem ($3.1 billion), along with partnerships with Waymo and Cruise.
While both companies have seen their stocks rise over the past year—Expedia by more than 50%—it is important to consider that Expedia is only one-tenth of Uber’s size based on market valuation (just below $20 billion).
As always with potential acquisitions or mergers like this one between Uber and Expedia—should it materialize—it remains uncertain whether they will come into fruition or not.
