Expedia shares jumps 6% since Uber considers an important acquisition

Expedia shares rose 6% on Thursday after rumors extended that Uber may be looking to buy the travel reservation company. The reports suggest that Uber has been exploring this idea and discussing it with the advisors in recent months, although the conversations are still in the early stages.

CEO of Uber and his Expedia connection

One of the reasons why Uber is looking at Expedia could be the connection between the leadership of the two companies. The CEO of Uber, Dara Khosrowshahi, was previously CEO of Expedia. During his time there, he played an important role in making the company one of the largest travel platforms worldwide. Although Khosrowshahi left expedited in 2017 to lead Uber, he still has a non -voting position in the Expedia Board of Directors. If conversations between companies advance, Khosrowshahi is likely to move away from any decision -making to avoid conflicts of interest.

Why Uber might want to buy Expedia

The possible agreement makes sense when you look at Uber’s recent expansion in new areas beyond the walks. Uber has moved to food delivery, cargo transport and even travel reserves. When acquiring expedia, Uber would add a powerful travel reserve platform to its range of services, which makes it easier for users not only to take a trip, but also reserve flights, hotels and more, directly through the Uber application.

Market reaction to news

Although nothing has been announced, the stock market quickly reacted to rumors. Expedia actions increased by 6%, reflecting investors’ emotion on the possibility of an important agreement. During the past year, Expedia has already seen a 50% increase in the value of the shares, largely due to the increase in trips after the pandemic. On the other hand, Uber’s shares slightly fell 3% after the news, but has still increased by 84% during the past year.

If this agreement occurs, it could be Uber’s greatest acquisition so far. With expedia valued at around $ 20 billion, the potential purchase would show Uber’s commitment to increase its influence not only in transport but also on trips.

Uber future plans and strategy

Uber has not only been looking to acquire companies in the travel industry. The company has also invested in autonomous management technology and has been associated with key players in the field to boost their autonomous vehicle efforts. Adding a company as an expedition to its portfolio would allow Uber to offer a more complete travel experience, from the flight and hotels reserve to organize trips.

While it is still uncertain if Uber will really advance with the acquisition, the possibility reflects the company’s ambition to expand to more industries and become a leader in transport and travel services.

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