Uber's Ambitious Move to Become Your Ultimate App
Uber has long dreamed of being more than just a ride. With Waymo’s entrance into autonomous vehicles, Uber is speeding up its plans to become a super app, offering hotels, restaurants, and more through the Uber platform.
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Uber's Ambitious Move to Become Your Ultimate App
For years, Uber has been talking about becoming a 'super app' that integrates various services under one roof. Now, with Waymo starting to pick up passengers in San Francisco, the urgency of this plan is more pressing than ever.
The GO-GET Product Event
Two weeks ago, Uber held its annual GO-GET product event in New York City and unveiled a series of new partnerships that bring it closer to realizing this vision. The company now allows users to book hotels directly through the Uber app, working with Expedia Group for over 700,000 properties worldwide.
Uber One members can enjoy special discounts: 20% off a rotating list of 10,000 hotels and 10% back in credits. The company plans to expand this service by adding vacation rentals through Vrbo later this year, along with restaurant reservations via OpenTable.
Expanding Services for Seamless User Experience
The aim is to create a seamless experience where users can move from one service to another without leaving the Uber app. For example, Praveen Neppalli Naga, Uber’s CTO, explained that the company sees potential in integrating flights and financial services into the Uber ecosystem.
“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.”
The Super App Race in America
While Uber races to become a super app, other companies are also vying for the same title. Airbnb has announced plans to offer airport transfers via its own platform, and Elon Musk’s X is on track to launch its banking and payments platform within the social network.
Uber's Installed Base as a Moat
The key for Uber is leveraging its large user base. With 50 million people now paying for Uber One, it has a significant advantage over new entrants. These users have already given Uber their credit card information and are more likely to stay within the same platform.
According to recent earnings, Uber Eats is growing rapidly, with delivery revenue up by 34% year over year in the first quarter, making it a strong argument for the super app strategy. However, Wall Street remains skeptical, as Uber’s stock is down about 8% from a year ago.
Conclusion
The race to become a super app is heating up, and while Uber faces stiff competition, its large user base provides a strong foundation for growth. Only time will tell if the American market can support multiple super apps or if one will dominate the space.
