Uber has explored an acquisition of Expedia in recent weeks, according to industry sources.
Financial Times insiders claim Uber has talked to advisers about the viability of a buyout. Any takeover attempt would reportedly be “friendly,” with CEO Dara Khosrowshahi recusing himself given his leadership of the Expedia Group between 2005 and 2017 as well as his connection to Expedia executive chairman Barry Diller.
Expedia has declined to comment. We’ve asked Uber for comment and will let you know if we hear back.
Uber hasn’t made a formal bid for Expedia, and there aren’t any ongoing talks known at present. There’s no guarantee Uber will pursue a deal any further.
If the report is accurate, though, it could lead to an upheaval in the travel industry. Uber could rapidly expand beyond ridesharing and food into flight and hotel bookings — you could use one service to arrange virtually every aspect of a trip. That could pose problems for Lyft, Doordash, Kayak, and other competitors that can only help with some of your journey.
Expedia has its own incentives to consider an Uber deal. While stay bookings grew by 10% overall during the second quarter, the company’s vacation rental booking service Vrbo struggled before that due to reduced travel across the industry. Expedia also has yet to see the results of a long-in-progress technology consolidation effort. An Uber tie-up could drive more people to hotels and vacation homes, and help justify the tech upgrade.
Regulators might not be as pleased. A successful union between Uber and Expedia potentially gives both companies dominance over the online travel services market. There’s a chance officials might either block an acquisition or require certain concessions to minimize the potential for antitrust abuses.