Uber Technologies is reportedly considering an acquisition of online travel giant Expedia Group.
The deal, should it happen, would represent not only the latest strategic move by Uber but also a nostalgic return for CEO Dara Khosrowshahi, who helmed Expedia for over a decade before swapping flights for surface transport in 2017.
It was during his tenure at Expedia that Khosrowshahi benefited from the mentorship of veteran dealmaker Barry Diller. As board chairman, Diller helped transform Expedia into one of the largest online travel-booking platforms in the world. Its reported revenue for the first six months of 2024 was $6.45 billion; full-year revenue for 2023 was $12.84 billion.
Considering Uber boasts a market cap of roughly $168 billion, it’s plausible that Khosrowshahi may be ready to reclaim a piece of his past. Like Diller, Khosrowshahi hasn’t been shy about wielding Uber’s M&A might, although the results achieved have been mixed. His biggest purchase was in 2019 when Uber bought the Middle Eastern ride-hailing company Careem for $3.1 billion, only to sell it four years later for a disappointing $400 million.
Also with Khosrowshahi at the helm, Uber bought Jump Bikes for $200 million in 2019 as an entrée into the micro mobility arena. And to grow Uber Eats, the San Francisco-based startup snagged grocery delivery service Postmates for $2.65 billion and alcohol delivery app Drizly for $1.1 billion. On the flip side, Uber sold its autonomous-driving unit to the self-driving startup Aurora Innovation in 2020 for $4 billion.
An acquisition of Seattle-based Expedia would elevate Uber’s ambitions to new heights. It could be more than just a nostalgic power play, too.
An Expedia takeover makes good on a promise Khosrowshahi made in 2021 when he outlined a plan to transform Uber into a so-called superapp. Picture a platform where you can not only book a ride but also order a burger and plan your next vacation—all with the convenience of Uber’s app. If Khosrowshahi gets his way, Uber could evolve from a mere car service into your digital personal assistant, managing everything from groceries to travel plans—all while slyly reminding you that surge pricing still applies.
