Ride-hailing, but for travel. Uber targets tourism in new drive

Uber, the world’s largest ride-hailing firm, is making a play for tourism, expanding its services to include yachts, boat tours, and more recently in South Africa, safari experiences. Known for disrupting the global taxi industry, it has unveiled offerings across Europe and Africa to capture the growing demand for unique travel experiences.

Its move into travel services comes when tourism is growing across Europe and Africa. According to Uber’s 2023 data, demand for mobility services in regions like Spain and Greece surged by 55% last year. This presents a clear opportunity for Uber to tap into the tourist market. 

On July 1, 2024, Uber announced its yacht service in Ibiza, Spain. This service, available from July 26, allows users to pre-book yachts for trips along the island’s coastline. In Venice, Uber will offer limo boats, helping tourists navigate the Venetian Lagoon starting in August. These water-based services make it easier for visitors to travel between key attractions and remote locations.

The expansion extends beyond Europe. In Greece, it is expanding its Uber Boat service from Mykonos to Athens, Corfu, and Santorini. Visitors can book rides to beach clubs and lesser-known destinations, capitalizing on seasonal peaks in tourism, part of a broader goal to become a one-stop shop for tourists. 

CEO Dara Khosrowshahi emphasized this approach in 2023, discussing Uber’s ambition to be a comprehensive travel platform offering flights, train bookings, and luxury travel options—his experience at Expedia positions Uber to challenge traditional tour operators. In the UK, it added flight bookings to its coach and train options, allowing it to compete with yet-prominent travel agencies.

Despite fears that new services might affect its core business, Uber has maintained strong growth in ride-hailing. The company reported 25 million trips per day globally in Q2 2023, a 22% increase from the previous year. This demand shows that Uber can integrate different services without undermining its main revenue streams. 

The company’s latest venture, Uber Safari, launched on October 1, 2024, in South Africa. The service offers a full-day wildlife experience, allowing tourists to book a ride from Cape Town to Aquila Private Game Reserve, with a game drive to see the Big Five. Priced at $200 for up to four guests, Uber Safari highlights the potential for growth in Africa’s wildlife tourism market.

“Uber Safari is the latest travel experience to launch as part of Uber’s ‘Go Anywhere’ series, following Uber Bubbles in Paris, Uber Balloon in Cappadocia, and Uber Boat in Mykonos,” Uber said in a statement. 

“The full day trip includes a pick-up in Cape Town in an Uber Safari-branded vehicle… Upon arrival at Aquila, guests will enjoy a welcome toast and lunch before boarding a traditional safari vehicle with experienced game rangers and field guides.”

Its tourism push follows its first global operating profit in Q2 2023, with a net income of $326 million, compared to a $713 million loss the previous year. This profitability has been driven by cost-cutting measures. 

Revenue grew by 14% year-on-year, reaching $9.2 billion, while costs increased by just 2%. Growth outside the U.S. and Canada has also been key to profitability. Entering Europe, Africa, and beyond, its travel arm could become a vital revenue stream, especially in markets where tourism is a major economic driver.