Uber pushes beyond rides as urgency grows for new revenue
▼ Summary
– Uber announced a partnership with Expedia Group to allow U.S. users to book hotels within its app, with Uber One members receiving discounts and credits.
– Uber’s strategy for becoming a “super app” centers on its Uber One membership, which provides a reason for users to stay within the app across categories like rides, food, and hotels.
– Competitors are also pursuing the super app model, with Airbnb offering airport transfers and Elon Musk planning to launch X Money as a banking platform on X.
– Uber’s delivery revenue grew 34% year over year to $5.07 billion in Q1, nearly matching mobility in gross bookings, though its stock remains down 8% from a year ago.
– Uber’s advantage is its 199 million monthly active users who have already provided payment information, but it faces the challenge of convincing them to consolidate services into one app.
For years, Uber talked about becoming a super app. Then Waymo started picking up passengers in San Francisco, and the conversation grew more urgent. The company has been trying to embed itself inside the AV industry , as a data provider, an investor, and a distribution platform , but the consumer-facing bet may be just as important.
Two weeks ago, Uber held its annual GO-GET product event in New York and announced something its executives had been circling for a long time: users in the U. S. can now book hotels inside the Uber app, through a partnership with Expedia Group, with access to more than 700,000 properties worldwide. Uber One members , the company’s subscription tier at $9.99 a month , get 20% off a rotating list of 10,000 hotels and 10% back in credits. Vacation rentals through Vrbo will follow later this year, along with restaurant reservations via OpenTable. In the meantime, a “Shop for Me” feature lets users order from stores that aren’t even on the platform.
The announcements, taken together, were the most concrete picture yet of something Uber has been trying to conjure since at least 2019: that an app with 199 million monthly active users could become the app they use for nearly everything.
Praveen Neppalli Naga, Uber’s CTO, offered the clearest explanation of the company’s thinking at TechCrunch’s StrictlyVC event late last month in San Francisco. The super app concept has existed for years in India and Southeast Asia, he noted, but U. S. versions have mostly flopped by bolting services onto traffic rather than building toward a reason to stay.
His answer to what fits? Membership. Every new category , food, groceries, now hotels , gives someone another reason to pay for Uber One. “I take Uber, go to the airport, take a flight, take another Uber, go to a hotel, go to a restaurant,” he said. “There is a flow you can actually build into it.”
Flights are not available yet, though Naga didn’t rule them out. Uber tried flight booking in Europe years ago without success. “First let’s get the hotel things done,” he said. Financial services sound like a possibility too , Uber already offers a debit card to drivers in Mexico , though how far that goes, or when, remains unclear. Said Naga: “Never say never.”
Uber isn’t alone in this race. Airbnb, arguably the company most directly threatened by Uber’s hotel push, announced its own transportation ambitions in late March , a partnership with Welcome Pickups to offer airport transfers in 125 cities across Asia, Europe, and Latin America, structured to keep users inside the Airbnb app rather than sending them to Uber. Meanwhile, Elon Musk has spent three years promising to turn X into an “everything app” in the WeChat mold, and is now nearing what he describes as a long-stated goal: X Money, a banking and payments platform built inside the social network, is expected to launch publicly soon. X claims 500 million monthly active users.
The big question is how many super apps the American market will actually support. WeChat works in China partly because the alternative was a patchwork of inferior options. In the U. S., people already have apps they like for most of what Uber wants to do. Getting them to consolidate inside a single platform requires either a compelling reason , Uber One’s discounts, say , or a seamless enough experience that switching feels worth it.
Uber’s bet is that its installed base is the moat. Its users have already handed over a credit card. Convincing them to book a hotel, or order from a store they’d never find on Uber Eats, is an easy lift compared with convincing them to download something new. Its most recent earnings, reported a few days ago, suggest Uber Eats may be the strongest argument for that thesis: delivery revenue grew 34% year over year in the first quarter, to $5.07 billion, making it easily the fastest-growing part of the business and pulling almost even with mobility in gross bookings.
Uber’s stock is still down about 8% from a year ago , suggesting that Wall Street isn’t fully convinced. But the company says that 50 million people are now paying for Uber One, and together they account for roughly half the company’s total bookings.
(Source: TechCrunch)
