Dive Brief:
- Uber is expanding its services into hotel reservations in an effort to build customer engagement and loyalty, CEO Dara Khosrowshahi said on a Q1 2026 earnings call Wednesday.
- Through a partnership with Expedia, customers can now search, reserve and pay for 700,000 hotels through the Uber app. Uber first announced the new feature last week at its “Uber Go-Get” event.
- “From hotel bookings and travel mode to new ways to shop and coordinate across our platform, these innovations are designed to deepen the everyday utility of our services and to build engagement and loyalty,” Khosrowshahi said on the earnings call.
Dive Insight:
Uber is looking to expand its role in everyday life across travel and local commerce to become a one-stop shop for customers.
The company has more than 50 million Uber One customers, reflecting strong customer loyalty, Khosrowshahi said. Gross bookings grew 21% year over year.
That engagement provided strong financials. Revenue grew 14% year over year to $13.2 billion, and Uber reported a net income of $263 million, according to an earnings release.
Uber One member retention rates are higher and members spend three times more, Khosrowshahi said. “It's a unique advantage that we have over our competition.”
In addition to expanding into hotels, the ride hailing company is investing more into ride reservations.
“We've always had an internal debate whether or not we can make the transition from on-demand kind of behaviors to more kind of preparing ahead, reserving ahead kind of behaviors,” Khosrowshahi said.
The company originally rolled out Uber Reserve as a product used mainly among travelers heading to the airport and received feedback that reserving rides reduces travel day stress, according to Khosrowshahi. Uber Reserve continues to grow, with higher margins than the mainline business.
“Customer satisfaction is very, very strong. And now we're developing the Reserve service, not just as a service for people to go to airports, but people to get picked up when they land in airports as well,” Khosrowshahi said.
The experience with Reserve demonstrated Uber’s ability to go from on-demand to planned services, such as hotels, Khosrowshahi said.
Consumers use Uber at a high rate when they travel. Travel to and from airports makes up about 15% of Uber’s mobility gross bookings. Additionally, 40% of U.S. riders take trips outside of their home city, and in 2025, more than 1.5 billion trips globally happened outside of users' home cities.
“So when you put that together — which is proving ourselves with Reserve, moving from on-demand to kind of planning ahead, and then the incredible audience and efficacy we have with the travel consumer — hotels was, of course, a very, very natural expansion for us,” Khosrowshahi said.
Uber is working to boost Uber One memberships with the addition of hotels. Uber One members who reserve hotels on the app receive 10% Uber credits as well as 20% off select hotels.
“So really, the focus for us is to drive that cross-platform activity, give a bunch of money back to Uber One members,” Khosrowshahi said.