Uber Technologies Inc. (NYSE:UBER) is reportedly considering a bid for travel booking giant Expedia Group Inc. (NASDAQ:EXPE).
What Happened: Uber has been consulting advisers to assess the feasibility of acquiring Expedia, a company with a market valuation just shy of $20 billion, reported the Financial Times, citing three people familiar with the process.
The discussions have involved Uber CEO Dara Khosrowshahi, who served as Expedia's CEO from 2005 to 2017 and is currently a non-executive board member.
According to sources, Uber's interest is still in the early stages, and a deal may not materialize. There has been no formal approach to Expedia, and discussions are not currently taking place, said one individual.
Uber's interest in Expedia aligns with its strategy to expand beyond ride-hailing into areas such as food delivery, corporate logistics, and advertising, with the aim of becoming a "super app."
The acquisition of Expedia and its booking technology could significantly enhance these ambitions. Uber currently has a market capitalization of $172.06 billion.
Why It Matters: Uber's potential acquisition of Expedia comes as the company continues to diversify its business.
Earlier this month, Uber announced measures to ramp up the electrification of its fleet and launched an AI assistant to support drivers transitioning to electric vehicles.
However, Elon Musk-led Tesla Inc.'s (NASDAQ:TSLA) upcoming Cybercab service, designed to provide an affordable autonomous ride-hailing option, could present a challenge to Uber.
If these discussions go through, Musk's companies and Khosrowshahi won't only be competing in the robotaxi arena but for the supremacy of the "super app" too.
Musk's vision for X, formerly Twitter, is to transform it into an "everything app," similar to China's WeChat.
This ambitious plan aims to integrate various functionalities—social media, messaging, video calls, and financial services—into a single platform.
The tech mogul has already made some efforts to achieve this goal, but with Uber's potential entry, he could face some challenges.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
