Uber users in the US will have access to a wide selection of hotels, an offering which will grow overtime to the full to 700k+ properties on the Expedia platform. Vacation rentals from Expedia’s Vrbo will be added later this year. Global launch is expected in the future.
This is yet another step in Uber’s strategy to become an “app for everything.”
The 46 million U.S.- based Uber One members, part of the paid membership program with subscription fees of $9.99/month or $99.99/year, will earn 10% back in Uber One credits on all hotel bookings, and save 20% on a rolling list of over 10k hotels.
In return, Expedia will add Uber rides directly in the Expedia mobile app beginning in June, and travelers will start receiving push notifications before hotel check-in to book discounted Uber rides.
The question is, is Uber expanding into hotel bookings good or bad for the industry?
Here is my take:
The big winner here is Expedia, adding another marquee player to its affiliate network. Uber will join other significant affiliates of Expedia, together with Chase Travel, Walmart Plus Travel and numerous airlines, tour operators, cruise lines, etc.
This new arrangement is part of Expedia’s aggressive B2B strategy. In Q4 2025, Expedia Group's B2B division generated approximately $1.3 billion in revenue, marking a 24% year-over-year increase and representing roughly 38% of the company's total revenue. B2B gross bookings in Q4 reached $8.7 billion, demonstrating significantly faster growth than the consumer (B2C) segment.
Why is Uber adding hotels? Though Uber will not be making a profit from this arrangement (7%-8% affiliate fees from Expedia do not cover the 10% Uber One credits on all hotel bookings), Uber is adding another big retention incentive to its 46 million Uber One members in its paid subscription program.
So, the question is: is this new development good or bad for the hospitality industry?
In my view, by adding Uber to its B2B partner portfolio, Expedia will increase its reach in the marketplace and gain bigger market share at the expense of the direct hotel bookings, and will provide travelers with yet another popular avenue to circumvent direct bookings.
Max Starkov
Hospitality & Online Travel Tech Consultant & Strategist
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