As the Thanksgiving travel season approaches, Uber Technologies Inc. UBER has unveiled its new “XXL” rides service. This initiative is designed to accommodate the expected increase in travel demand, particularly at airports.
What Happened: The XXL service, offering additional trunk space, is now available at more than 60 airports globally, including 40 in the United States and Canada. This launch is part of Uber’s strategy to enhance its ride-hailing business amid ongoing economic challenges, Reuters reported on Wednesday.
Uber has also introduced new reservation features, allowing users to enter flight details to receive suggested departure times for airport arrivals. The company will track flights to notify customers of delays and provide options to adjust drop-off times.
Uber CEO Dara Khosrowshahi highlighted the company’s focus on capturing suburban markets in the U.S. by improving reservation and waiting features. In 2023, trips related to airports made up 15% of Uber’s mobility gross bookings.
Travel group AAA forecasts nearly 80 million Americans will travel over the Thanksgiving period, setting a new record. Uber aims to leverage this surge in demand, as stated by John Nickels, Uber’s senior director of product management.
Why It Matters: The launch of Uber’s XXL rides comes at a crucial time as the company faces increased competition in the autonomous vehicle sector. Recently, Uber’s stock experienced a significant drop due to concerns over competition, following reports that President-elect Donald Trump plans to ease restrictions on self-driving vehicles. This could potentially accelerate the adoption of autonomous technology, benefiting companies like Tesla Inc. TSLA with its Cybercab robotaxi plans. Uber, which has been involved in autonomous driving through various partnerships, may face intensified competition in this evolving market.
Meanwhile, other companies are also gearing up for the holiday season. Walmart Inc. WMT has introduced initiatives like an inflation-free Thanksgiving meal and a “buy one, give one” donation feature to enhance customer convenience during the holidays.
Price Action: At the time of writing on Wednesday, Uber was up by 0.48% during pre-market hours after previously closing at $69.13, as per Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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