Uber expands into hospitality with Expedia partnership and AI-driven booking tool
US customers can now book over 700,000 hotels via the Uber app through a deal with Expedia Group, while Uber One members receive significant discounts and credits.
Uber has officially entered the hospitality sector with the launch of a hotel booking feature within its US application. Announced at the company's annual Go-Get event in New York City, the update allows customers to reserve accommodation through a strategic partnership with Expedia Group. The new service provides access to a global inventory of more than 700,000 hotels, marking a significant shift from Uber's traditional focus on ride-hailing and food delivery.
The rapid deployment of this feature highlights a broader strategic pivot under CEO Dara Khosrowshahi, who previously led Expedia Group for 12 years. Khosrowshahi described the move as part of a vision to transform Uber into an "app for everything," encompassing travel, dining, and accommodation. This expansion is supported by the addition of vacation rental inventory from Vrbo, which is scheduled to be integrated into the platform later this year.
A key driver of this initiative is the adoption of agentic AI tools, such as Cursor, which have fundamentally altered the company's software development lifecycle. Praveen Neppalli Naga, Uber's chief technology officer, noted that the hotel booking feature was developed in months rather than the typical year-long cycle. This accelerated timeline addresses historical bottlenecks regarding time and resources, allowing the firm to move from concept to launch at a speed previously unattainable.
To incentivise usage of the new service, Uber has introduced specific benefits for its Uber One subscription members. These users are eligible for 20 per cent discounts on a rolling list of 10,000 hotels and will earn 10 per cent back in Uber Credits on all bookings. The integration aims to deepen user engagement by consolidating multiple travel needs into a single interface, reducing the friction of switching between different digital platforms.
Beyond accommodation, the event unveiled several ancillary features designed to enhance the travel experience. A new travel mode offers guides on tourist hotspots and local favourites, while an extension to Uber Eats includes a room service hub for forgotten items. Additionally, the "Eats for the Way" feature allows passengers with reserved Uber Black rides to pre-order snacks and drinks for delivery to their vehicle upon arrival.
Looking ahead, Uber plans to further integrate dining services by enabling direct table bookings through OpenTable within the app. This continued expansion underscores the company's commitment to leveraging technology to solve complex logistical challenges, positioning itself as a comprehensive lifestyle utility rather than merely a transport provider.
