The ride-sharing giant is venturing into new territory by adding hotel reservations to its platform.
Uber announced Wednesday that customers can now reserve hotel accommodations directly through its application. The company has partnered with Expedia Group’s booking platform, which provides access to approximately 700,000 hotels and lodging properties worldwide. The ride-hailing service plans to incorporate over one million vacation rental options from Vrbo, Expedia’s subsidiary based in Seattle, before the year ends.
According to Sachin Kansal, Uber’s chief product officer, the addition of hotel reservations represents a significant milestone in the San Francisco company’s vision to create a comprehensive service platform. The company, established in 2009, introduced Uber Eats for food delivery in 2015 and added grocery delivery services in 2020.
“Consumers are spending too much time coordinating their life, using multiple apps. AI is in the air and they’re all trying to figure out, how does AI help me or does it not help me?” Kansal told The Associated Press. “Our goal with these announcements is to bring everything into one app, to help them save time, and to also help them save money.”
All Uber application users will have access to hotel booking capabilities. However, Uber One subscribers, who pay a monthly fee of $9.99 for benefits like free delivery, will receive special pricing advantages. These premium members can access 20% discounts on a rotating selection of 10,000 hotels and earn 10% back in Uber credits for future ride bookings, Kansal explained.
Kansal revealed that Uber considered several potential collaborators before selecting Expedia as their partner. The integration process required several months of technical work to incorporate Expedia’s systems into Uber’s platform. The executive declined to reveal the financial details of their partnership agreement.
“They’re very excited because Uber brings a certain user base that is very travel-friendly,” Kansal said. “So I would say it’s going to mutually beneficial for both the parties.”
Travel plays a significant role in how people use Uber’s services, according to Kansal. The platform transports over 100 million passengers annually to and from airports. Additionally, more than 1.5 billion Uber trips in the previous year occurred outside riders’ home cities.
The hotel booking capability was among multiple travel-focused features unveiled during Uber’s annual product showcase Wednesday. The company also introduced an enhanced travel mode designed to help users discover dining establishments and attractions in destinations they visit.
Uber revealed plans to offer restaurant suggestions and table reservation services through OpenTable integration within its app. Competitor DoorDash has recently added similar restaurant booking features after acquiring hospitality technology company SevenRooms.
The company also announced a premium service allowing customers to pre-order beverages or snacks that will be ready when their Uber Black vehicle arrives. This service will debut in the coming weeks across multiple cities including Atlanta, Philadelphia, and Los Angeles.
