Uber to Expand Scope in the UK After License Win

Uber (UBER) is looking to tap other revenue opportunities outside its flagship rideshare business. The company plans to introduce flight, train, bus, and hotel booking services to its app in the coming months, starting with the UK.

According to a Financial Times report, the company plans to team up with third-party partners to provide additional services. It will make money by charging a service fee. Uber has not unveiled its partners yet. Expedia (EXPE) and Booking (BKNG) are major global online flight and hotel booking providers. Notably, Uber CEO Dara Khosrowshahi is a former Expedia CEO.

The plan to introduce additional services is part of Uber’s efforts to offer customers a seamless door-to-door travel experience.

“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,” Bloomberg quoted Jamie Heywood, Uber’s regional general manager for U.K., Northern and Eastern Europe.

Uber Secures London License Renewal

As early as this summer, Uber customers in the UK may be able to use the app to purchase train and bus tickets. Later in the year, flight bookings may be added with hotel reservations coming in 2023, according to the report. 

After it recently secured a renewal of its license to operate in London, Uber has revealed its plan to expand the scope of its app in the UK. The UK is one of Uber’s largest foreign markets, and there it competes with rideshare services such as Free Now, Bolt, Ola, and Wheely. The company hopes to introduce the services in additional countries after the UK pilot.

Wall Street’s Take

Consensus among analysts is a Strong Buy based on 25 Buys and one Sell. The average Uber price target stands at $60.48 and implies upside potential of 92.12% to current levels, at the time of writing. Shares have declined 24% year-to-date.

Stock Investors

TipRanks’ Stock Investors tool shows that investor sentiment is currently Very Positive on Uber, with 1.6% of portfolios tracked by TipRanks increasing their exposure to UBER stock over the past 30 days.

Key Takeaway for Investors

The move that Uber is planning in the UK to bulk up its app is one that could help it kill two birds with one stone. First, it would be able to generate additional revenue streams through service fees. Second, the additional services may help it draw more users to its core rideshare service for movements to and from airports, train and bus stations, and hotels.

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