Uber is expanding its services yet again, this time delving into the realm of travel accommodations. The ride-hailing giant has announced that users can now book and pay for hotel rooms directly through the Uber app. This move was unveiled at the company’s annual Go/Get product event, where several other travel-related features were also introduced.
This foray into hotel reservations marks a significant shift for Uber. The company has been eyeing this expansion for some time now, with partnerships in place with Expedia, a major player in the travel booking industry. In fact, Uber’s CEO, Dara Khosrowshahi, previously held the same position at Expedia. At launch, the Uber app will feature over 700,000 hotel properties worldwide, thanks to its collaboration with Expedia.
Sachin Kansal, Uber’s chief product officer, highlighted that customers already use the app for various travel needs, from airport rides to food delivery. The addition of hotel bookings is a natural progression for Uber, aiming to streamline the entire travel experience for users.
The hotel booking feature is powered by Expedia’s API, but Uber’s engineers have worked diligently to seamlessly integrate it into the app. This ensures a smooth and user-friendly experience for customers. Additionally, Uber One subscribers will enjoy discounts when booking rooms with specific hotel chains and earn points that can be used for rides or food delivery services.
In the coming months, Uber will also include home rentals from Vrbo, another Expedia-owned platform, in its app. This move further solidifies Uber’s presence in the travel accommodation sector.
Expedia Group, which owns Vrbo, Hotels.com, Travelocity, Hotwire, and Orbitz, is a key competitor to Booking Holdings. Both companies invest heavily in marketing to attract customers. While Booking currently leads the market, Expedia is aiming to climb the ranks with its partnership with Uber.
However, venturing into hotel bookings poses risks for Uber. The company must ensure that customers do not feel overwhelmed by the plethora of services on its app. To address this, Uber is personalizing the user experience by tailoring the homepage to individual preferences and introducing a simplified “one search” function.
Aside from travel-related updates, Uber has introduced new features like on-the-go snacks for Uber Black and Uber SUV customers, a “Shop for Me” option for purchasing items from non-listed stores, and AI-powered search capabilities for voice-activated bookings. These enhancements aim to enhance the overall user experience and streamline the process of using the Uber app.
While air travel may be a potential future endeavor for Uber, the company is currently focused on perfecting its existing services. Kansal emphasized the importance of creating a seamless experience across rides, food delivery, and hotel bookings. With a strong foundation in place, Uber is well-positioned to continue innovating and expanding its offerings in the future.