Published - Apr 7, 2022 @ 11:27 AM (EET)
On Wednesday, leading ridesharing and mobility company, Uber (NYSE:UBER), said it would add trains, buses, planes, and car rentals as transportation options for its customers in the UK later this year.
The move will serve as a trial and, if all goes well, later expand to other countries as an official launch, with Uber's intent on having, what some would call, a travel "super-app."
It does not mean that Uber will provide these travel services itself, but rather, it will allow users to book them through its app by partnering with companies and integrating its software with platforms that sell travel tickets.
During the Covid-19 pandemic, Uber moved into the food delivery market with Uber Eats to help weather the market and take the lead against pure-play rideshare rivals like Lyft Inc.
WHY IT MATTERS
Expanding into a "super-app" has been a vision of CEO Dara Khosrowshahi since 2018 as he continues to diversify the company, which used to rely heavily on vehicle transportation of customers.
Uber, which may earn a commission on each booking through its partnerships with travel companies rather than building in-house companies, could signal a middle man position in the travel industry.
In addition, these endeavors will help boost app usage among its users in the UK while collecting fees along the way.
According to Jamie Heywood, Regional General Manager of Northern & Eastern Europe, the company hopes to be a "one-stop-shop for all your travel needs." He said, "you have been able to book rides, bikes, boat services, and scooters on the Uber app for a number of years, so adding trains and coaches is a natural progression."
In March, Uber said it plans to start listing all New York City taxis through its app, another sign that Uber is looking beyond its core rideshare business model.
With solid prospects ahead and a high addressable market, Uber's shares look relatively attractive at the moment.
PRICE ACTION: In premarket trading Wednesday, Uber's share price was down 1.6% to $34.40.
