In recent weeks, there has been speculation that Uber has explored the possibility of acquiring Expedia, although no formal approach has been made and there are currently no active discussions taking place. This potential acquisition would be significant for Uber, as it would mark its largest acquisition to date and would expand its business beyond ride-hailing into travel bookings. The move would also be somewhat of a homecoming for Uber CEO Dara Khosrowshahi, who previously served as Expedia Group’s CEO from 2005 to 2017 and is currently a non-executive board director at the company.
Uber has reportedly approached advisers in recent months to assess the feasibility of a potential deal with Expedia, with any approach likely being made in a friendly manner. Khosrowshahi, who has ties to Expedia’s executive chair Barry Diller, would likely recuse himself from any deal talks to avoid conflicts of interest. The move to acquire Expedia aligns with Uber’s efforts to diversify its business and expand into new areas, such as travel bookings, beyond its core ride-hailing operations.
The potential acquisition would have significant financial implications, given the vast difference in market capitalization between Uber (valued at $173 billion) and Expedia (valued at just under $20 billion). Expedia has faced challenges this year, including a slower-than-expected recovery at its vacation rental brand Vrbo and a softening in travel demand due to the ongoing pandemic. Despite these hurdles, Expedia has seen growth in booked room nights, with an overall 10% increase in the second quarter, outpacing competitors like Airbnb and Booking Holdings.
While no formal talks are currently underway, the speculation surrounding Uber’s interest in acquiring Expedia highlights the potential for further consolidation and partnerships within the travel industry. This move could have wide-reaching implications for both companies, as well as for consumers who rely on platforms like Uber and Expedia for their travel needs. It remains to be seen whether this trial balloon will lead to concrete discussions and ultimately to a deal between Uber and Expedia, but the potential for such a significant acquisition is sure to capture the attention of industry experts and investors alike.
