Uber Technologies launched “XXL” rides with extra trunk space on Wednesday, betting on increased demand stemming from Thanksgiving holiday travelers, as the ride-hailing company seeks to overcome a slowdown in its mainstay app-based taxi business.
The Uber XXL service, catered toward airport travel, is available in more than 60 airports globally, including 40 in the United States and Canada, the company said.
The company also introduced new reservation features that allow users to input their flight details to receive a recommended time to leave for airport arrivals.
Why it’s important
Uber has been looking to reinvigorate demand, as it grapples with a weakening ride-hailing market due to economic uncertainty and high inflation impacting commuters.
CEO Dara Khosrowshahi said last month that the company plans to capture suburban markets in the U.S. by focusing on features that allow users to reserve and wait for rides.
Context
Uber will also track flights to notify customers in case of a delay, and will offer them the option to adjust their airport drop-off accordingly.
In 2023, Uber generated 15% of its mobility gross bookings from trips that were started or completed at an airport, according to an annual filing.
By the numbers
Americans are expected to set a new record for Thanksgiving travel, with nearly 80 million to hit the roads, catch flights, and board cruises over the holiday period, travel group AAA said on Monday.
Key quote
“The shape of the demand, it’s like spiky around Thanksgiving, and then it’s a bit more spread out when you go further into the year, around the Christmas holiday season,” said John Nickels, Uber’s senior director of product management.
—Arsheeya Bajwa, Reuters
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