Uber now lets you book hotels in its app
What's the story
Uber has announced a major expansion into travel accommodations by adding hotel booking and payment options in its app. The move was revealed at the company's annual Go/Get product event, where several other travel-related features were also announced. The new feature is powered by Expedia's API and will include over 700,000 hotels globally at launch.
Strategic alliance
Addition of hotels is a natural progression: Uber
Uber is working with Expedia, a travel booking company it considered acquiring in 2024. Notably, Uber CEO Dara Khosrowshahi was the head of Expedia before taking on his current role. Sachin Kansal, Uber's Chief Product Officer, said the addition of hotels is a natural progression as users already use the app for various travel-related activities such as airport rides or food orders through Uber Eats at their destinations.
User integration
Not just a web view of Expedia's UI
The hotel booking feature has been built from scratch by Uber's engineers to seamlessly integrate into the company's app. Kansal emphasized that it wasn't just about putting a web view based on Expedia's UI, but rather building it using detailed APIs provided by Expedia. This way, Uber hopes to create a seamless experience for its users who can now book hotels and order rides or room service once they reach their destination.
Expansion strategy
Uber to add home rentals and other features
Uber also plans to add home rentals from Vrbo, another Expedia-owned site, to its app later this year. However, entering the hotel booking space is a risky move for Uber as it isn't immediately known as a hotel broker. This could take time before customers start associating its app with travel accommodations. To combat this potential clutter issue, Kansal said Uber's engineers are personalizing the homepage based on each user's experience.
Tech upgrades
Other travel-related features added to Uber app
Uber is also adding a new travel mode to help users navigate unfamiliar airports with indoor walking directions. The app will offer city guides for visitors looking for local favorites and popular tourist destinations. Starting this summer, European customers will see the option to book boat rides directly in the app. Plus, Uber is integrating AI-powered search capabilities into its app, letting customers use voice commands to book a ride.