(UBER), (ACHR) – Planes, Trains and Automobiles: Could Uber Create a Great Travel App?


A leading ride-sharing and mobility company is set to offer additional transportation options to its customers, with plans to launch a super travel app. Here is the latest.

What happened: carpooling company Uber Technologies Inc. (NYSE: UBER) offers vehicle transportation, food delivery and grocery delivery to many customers around the world.

Uber announced on Wednesday that it will add trains, buses, planes and car rentals as transport options for its customers in the UK later this year. The plans build on Uber’s intention to have a “super app” for travel.

That doesn’t mean you’ll be able to hail a train for a quick ride, rather Uber will partner with airlines, bus and train operators, and car rental companies.

Uber said the move would be a pilot project that could be expanded to other countries.

Uber hopes to be a “one stop shop for all your travel needs”, according to Uber’s regional general manager for Northern and Eastern Europe, Jamie Heywood.

“Later this year, we plan to integrate flights, and in future hotels, by integrating premium partners into the Uber app to create a seamless door-to-door travel experience,” Heywood said.

Related Link: Joby Aviation Reaches SPAC Deal to Publicize Urban Air Mobility Company

Why it matters: Uber plans to announce partners on additional ride services in the future and may reduce bookings from partner platforms.

Uber CEO Dara Khosrowshahi said in 2018 that more transportation options are planned for the app in the future.

Uber’s move could further diversify the business, which relied heavily on customers transporting vehicles. An entry into the food delivery market with Uber Eats has helped the company weather the impact of the COVID-19 pandemic better than ride-sharing rivals like Lyft Inc. (NASDAQ:LYFT).

The mention of airlines being included in the app might be worth watching for eVTOL companies, which hope to offer short rides and many are moving to become the “Uber of the sky”.

eVTOL (electric vertical take-off and landing) companies that have gone public in the past two years include Joby Aviation (NYSE:JOBY), Archer Aviation (NYSE:ACHR), Lilium (NASDAQ: LILM), Vertical aeronautics (NYSE: EVTL) and Air Mobility Blade (NYSE: BLDE).

Joby Aviation stands out as a potential winner and potential partner company on the Uber super app, with Uber owning a stake in the company. Joby Aviation, which went public through the SPAC merger, purchased Uber Elevate from Uber Technologies.

Uber Elevate was the company’s eVTOL division before the sale. Uber is now an investor in Joby, which plans to offer flights in high-traffic urban areas that cost the same as a taxi ride.

A partnership between Uber and Joby seems natural given the investment and the relationship.

eVTOL companies and the potential growth of the sector have attracted the attention of Ark Invest and CEO Cathy Wood with Blade and Archer among the top 15 titles in the Ark Autonomous Tech & Robotics ETF (BATS: ARKQ).

Uber’s desire to partner with travel agencies rather than build new in-house businesses could indicate that it is a middleman in the travel industry and collects booking fees along the way. .

With Uber moving into space, a move by Lyft to partner with other transportation companies, including those in food delivery and the eVTOL space, can’t be too far off.

Price action: Benzinga Pro indicates that Uber shares fell 5.23% to $33.13 on Wednesday, from a 52-week range of $28.27 to $61.50.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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