Uber adds hotels to its app for mass transit

Open the Uber app and you’ll see options for hailing a car, ordering food, or going grocery shopping. And starting today, you’ll see something new: hotels.

In a big move for lodging, Uber is said to be adding the ability to book and pay for a hotel room to its app. This article was published on the company’s annual Go/Get eventwhile the company also unveiled a number of other travel favorites.

The hotel reservation may be one of the biggest deals in Uber’s recent history. But it’s something that’s been on the company’s radar for a while. Uber is said to be working in partnership with Expedia, a travel booking company the company is said to have decided to buy it in 2024and when launched it will include more than 700,000 hotels worldwide. Also known, the CEO of Uber Dara Khosrowshahi was Before Expedia’s CEO accepted his position here.

Sachin Kansal, Uber’s head of marketing, said Uber customers already use the app for a variety of transportation purposes, whether it’s getting a flight to the airport or ordering food through Uber Eats when they arrive at their destination. Hotel integration is considered the next natural step.

“I think there have been a number of programs in the world, as they already are in the travel world and in hotels,” Kansal said in an interview. “Our main goal is to be able to personalize the experience for our users.”

The app works through Expedia’s API, although Kansal explained that Uber engineers worked to develop the tool to be integrated into the company’s software.

“It’s not just us putting web views in there based on their UI,” he said. “We’ve built it from the ground up using the most detailed APIs we have access to, so it’s a perfect balance of development and innovation.”

Uber targets its customers using its app to make hotel reservations, order a ride to the hotel, and book rooms upon arrival. Uber One subscribers will receive discounts when booking rooms with certain hotel chains, while also earning points that they can use for rides or food delivery. And starting later this year, Uber is adding home rentals from Vrbo, another Expedia site, to its app.

In addition to Vrbo, Expedia Group also owns Hotels.com, Travelocity, Hotwire, and Orbitz. Its main competitors are Booking Holdings, which controls Booking.com, Priceline, Kayak, and CheapFlights. Every company spends billions of dollars a year on advertising alone when competing. Booking is currently the market leader, although Expedia hopes to move up the ranks thanks to its partnership with Uber.

Of course, Uber is taking a big risk by jumping into the hotel reservation space. The company is not immediately recognized as a hotel broker, so it may take time for customers to connect with its program and accommodation. And the company’s software seems to be growing exponentially over time. Now, combined with hotels, there is a risk that customers will be overwhelmed by additional offers and simply ignore them.

Kansal said Uber engineers are dealing with the information problem by changing the homepage so everyone knows. And the company is adding a “one search” service, in which users can search for popular topics, such as “ice cream,” and the app will show the destination or pickup, based on the user’s preferences.

In addition, Uber is adding a new transportation option to the app to help users search for unknown airports with indoor transportation options. The app will also provide city guides for visitors looking for local attractions and popular tourist spots. And starting this summer, European customers will see the possibility of booking a boat ride directly in the app.

But not everything Uber is announcing today is about travel. The company announced a new, progressive system where Uber Black or Uber SUV customers can request a snack or drink while waiting for them in the car. Kansal said that since most Uber drivers are Uber Eats dispatchers, the ability to request a snack or drink for a ride is a combination of the two experiences. “They will be paid for both jobs accordingly,” he added.

Another new feature is called “Buy Me,” in which Uber customers can order items from stores that aren’t listed in Uber’s directory. Customers can indicate the items they want to buy, and then Uber drivers and couriers can buy them at the store you requested.

Finally, Uber is incorporating AI-powered search features into its app, allowing customers to use voice commands to book a ride. For example, a user can ask the Uber app to book a cheap car that can fit five pieces of luggage to take them to the airport, and the AI ​​interface will complete the booking for them.

This will connect with Uber’s AI-powered features, such as creating a grocery order based on an uploaded product list image. The company is also racing to add hundreds of robotaxis through partnerships with manufacturers like Waymo and Wayve, as well as road delivery robot teams.

The next logical step seems to be air travel, but Mr. Kansal would not say whether air travel is an option for Uber. “Not at this time,” he said. “I want to make sure we achieve that. The opportunity we have to create seamless experiences between boarding and dining and hotels, there’s still a lot to do.”