Uber has expanded further into travel with the addition of hotel bookings via a partnership with Expedia Group.
The company is offering rewards to encourage its nearly 50 million loyalty members to book accommodations through its rideshare app.
It is also adding artificial intelligence-powered voice booking and travel recommendations to its platform as part of a multi-pronged release, unveiled at its GO-GET event in New York on Wednesday.
The additions come as Uber continues a push to become a super app, combining rides, food and travel in one experience.
"Life feels busier than ever -- too many apps, too many steps, too many decisions and no signs of it slowing down," said Uber CEO Dara Khosrowshahi in an Uber Newsroom post. "At Uber, our mission is to reimagine the way the world moves, so you can spend less time managing life and more time living it."
Khosrowshahi has long been bullish on the opportunity travel presents for Uber.
Suppliers in the travel industry expanding their offerings isn't new, said Alicia Schmid, Phocuswright director of research, consumer. But Uber is taking a different approach, she said.
"Hotels are booked weeks if not months in advance of travel," Schmid said. "It will be interesting to see how adoption goes and if Uber can shift from being an in-destination app to a pre-trip travel-planning app, even with all of the perks."
According to Robert Cole, Phocuswright senior research analyst covering lodging and leisure travel, Uber has been laying the groundwork for years -- it would be hard for anyone to say they couldn't see this coming.
"It's also not accidental that the strategy aligns perfectly with the Uber One subscription platform," Cole said. "Nor should it be shocking that Dara would partner with Expedia, the company he helped Barry Diller acquire while at IAC, and would later serve as its CEO for a dozen years."
Overall, Cole said it's a smart move by Uber.
"Travel is an infrequent purchase that is heavily reliant on trust," Cole said. "Uber is an everyday app that instills trust, allowing individuals to hop into the private cars of total strangers."
Uber's hotel inventory comes through a partnership with Expedia Group, where Khosrowshahi formerly served as CEO -- and which Uber pondered acquiring in 2024.
Ariane Gorin, CEO of Expedia Group, said on Wednesday that she sees the partnership as the "natural evolution of the future of travel."
The reality is that travel remains too fragmented, she said, adding the average trip entails bouncing between apps.
"At Expedia Group, we spent nearly three decades to simplify that," Gorin said. "Like Uber, we believe that the best innovations are the ones that make life feel a little more effortless."
U.S.-based users can now use the Uber app to search and book from more than 700,000 hotels across the globe. Later this year, Uber will add vacation rentals via Expedia Group-owned Vrbo.
Uber is also offering Uber One members perks on hotel bookings, delivering the option to a population of 46 million members worldwide. Members will receive discounts of at least 20% on a rolling list of 10,000 hotels. In addition, they will earn 10% back in Uber Credits on each booking, and this value will be shown upfront during the booking process.
All credits will be deposited into Uber One members' accounts within 24 hours of checking in for a hotel reservation.
Hotel bookings will function similar to Uber ride transactions, using the payment method stored in the user's Uber Wallet. After booking, the app will remind users to schedule rides through Uber Reserve while traveling.
Uber is not yet offering hotel booking via its website, according to Sachin Kansal, chief product officer at Uber. But that is something the company could consider going forward, he said.
"The predominant use today is in apps, so we wanted to start with that so we can offer that service and convenience to users right away," Kansal said. "But I expect this to be a multi-year road map for us. There's so much to do in travel, so much to do in hotel booking."
Source: PhocusWire