Uber is expanding into hotel bookings in partnership with Expedia, attempting to strengthen its strategy to become a “super app” and increase its subscriber base.
The company announced that users will now be able to book and pay for hotels directly through the Uber app, using Expedia’s technology. To encourage the use of the new service, discounts and cashback in the form of credits for travel will be offered.
Uber’s CEO Dara Khosrowshahi said that most of the revenue from the partnership will be returned to users as offers, aiming to strengthen the Uber One subscription program, which has about 50 million members. As he pointed out, the initiative is not aimed at immediate financial gain, but at long-term development of the platform.
The move is part of Uber’s strategy to evolve into a multifunctional app, similar to Asian “super apps” such as Grab and WeChat, which combine multiple services into one platform. As early as 2019, Uber integrated food delivery services, and then expanded into the market of goods and partnerships with large retail chains.
Today, transportation activities still account for approximately 50% of the company’s total bookings, however the distribution sector has reached a similar size and continues to grow.
Despite ambitious plans, the concept of a “super app” has not yet been widely adopted in Western markets, where users seem more hesitant about applications with multiple functions.
As part of the new partnership, Uber will add a separate “hotel” section to its app, and will upgrade its search function so that users can more easily navigate between services.
The agreement comes at a time when online travel platforms are facing new challenges from the development of artificial intelligence technologies, with “smart” digital assistants gaining the ability to make bookings autonomously.
