Uber discussed a bid for travel booking company Expedia, CNBC confirmed, in a deal that would push the ride-share company into new markets beyond car travel and food delivery.
The talks were in early stages, according to a person familiar with the discussions who asked not to be named since the talks are confidential. It remains unclear if an acquisition will take place. Expedia is familiar territory for Uber CEO Dara Khosrowshahi, who previously served as CEO of the travel group from 2005 to 2017. Khosrowshahi is still a non-executive member of Expedia’s board.
Uber has a market cap of around $168 billion, greater than its 2021 peak of around $112 billion. Shares fell in 2022 as the company struggled with high gas prices, inflation and bringing more drivers back to the platform following the pandemic. The company’s stock has soared roughly 300% in the last two years as people continue to order food and rely on its rideshare services. Its target, Expedia, is worth around $20 billion.
Uber’s interest in Expedia was first reported by the Financial Times.
Shares of Expedia were up more than 6% Thursday morning.
Expedia users can book flights, lodging, cars and activities through the company’s website, and it owns additional travel sites like Hotels.com, Vrbo and Orbitz. Expedia reported $28.8 billion total gross bookings in its second-quarter results in August.
An acquisition of Expedia would be a “‘major strategic home run” for Uber, Dan Ives, Wedbush Securities managing partner, told CNBC’s “Squawk Box” on Thursday. He said this suggests Uber is going on offense and looking for new monitization opportunities, and it could be a step toward a “super app.”
“They have a massive mojo, and they’re just gaining more and more share,” Ives said. “I think they’re going to be on the hunt for M&A.”
Uber did not immediately respond to CNBC’s request for comment.
