Uber is reportedly considering an acquisition of Expedia, one of the world’s largest travel booking companies. According to the Financial Times, the idea is still in early stages, with Uber yet to make a formal offer. With an estimated valuation of $20 billion, Expedia would be Uber’s largest acquisition to date. Sources indicate that Uber has spent the past several months consulting with advisers to assess the feasibility of the acquisition and exploring potential deal structures.

Dara Khosrowshahi, Uber’s CEO since 2017, may be in an unusual position during these discussions. Previously, Khosrowshahi served as CEO of Expedia and still holds a seat on its board. However, the report indicates that Khosrowshahi did not initiate the potential deal; instead, it was suggested by an external party. If the acquisition moves forward, Khosrowshahi may be required to recuse himself due to his ongoing ties to Expedia.

This potential acquisition aligns with Uber’s long-term vision to become the “Amazon of transportation.” Since Khosrowshahi’s tenure began, Uber has expanded beyond ride-hailing by introducing train, bus, and flight bookings in selected markets, while also pursuing strategic acquisitions. Notable purchases include Postmates, a food delivery service, and Drizly, an alcohol delivery company, which Uber ultimately shut down. Additionally, Uber has ventured into autonomous driving, partnering with Waymo and Cruise to introduce driverless rides in certain areas. Uber’s recent success in achieving profitability for the first time in 2023, driven by strong demand for rides and food delivery, puts the company in a favorable position to consider major acquisitions.

As discussions progress, an Uber-Expedia merger could significantly alter the travel landscape. For Uber, the move would mean a rapid expansion into a mature travel market, while for Expedia, it could signal a shift toward integrated travel solutions. With both companies positioned as leaders in their respective spaces, a merger might reshape how travelers book transportation and accommodation worldwide.

For more on this developing story, visit the original article on Engadget. If the acquisition proceeds, this would mark a milestone in Uber’s transformation from a ride-hailing platform into a comprehensive travel and mobility provider.