Uber Tender for travel booking company discussed Expedia.comCNBC confirmed that the deal will propel the ride-sharing company into new markets beyond car travel and food delivery.
Negotiations are at an early stage, according to a person familiar with the matter who asked not to be identified because the talks are confidential. It’s unclear whether an acquisition will take place. Expedia is familiar territory for Uber CEO Dara Khosrowshahi, who served as chief executive of the travel group from 2005 to 2017. member.
Uber’s market value has increased by 80% in the past year, with its stock price hitting a record high earlier this month, and its current market value is approximately $168 billion. The company has rebounded from a dismal 2022, when high gas prices and inflation curbed spending, with more drivers returning to the platform post-pandemic. Uber’s resurgence has been driven by demand for ride-sharing and the boom in its Uber Eats food delivery service. Expedia is valued at approximately $20 billion. Shares are still about 26% below their 2022 highs as the company faces stiff competition from Booking, Airbnb and even Google.
Uber first reported interest in Expedia financial times.
Expedia shares were up more than 6% Thursday morning.
Expedia users can book flights, accommodations, cars and activities through the company’s website, which also owns other travel sites such as Hotels.com, Vrbo and Orbitz. Expedia reports $28.8 billion in gross bookings Second quarter results August.
Wedbush Securities managing partner Dan Ives told CNBC’s “Squawk Box” on Thursday that acquiring Expedia would be a “major strategic home run” for Uber. He said this shows that Uber is on the offensive and looking for new profit opportunities, which may be a step towards a “super app”.
“They have tremendous magic, and they’re gaining more and more share,” Ives said. “I think they’re going to look for mergers and acquisitions.”
Uber did not immediately respond to CNBC’s request for comment.
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