Uber is acquiring SpotHero, a company that provides a parking reservation app for crowded downtowns, sporting events, and concerts.
Terms were not disclosed, but Uber said Monday it plans to offer a parking reservation experience powered by SpotHero within its own app to help users find parking for events, venues, and airports. “For the moments when people do choose to drive, SpotHero on the Uber app will make the experience easier than ever, and bring more people into the Uber ecosystem,” Uber CEO Dara Khosrowshahi said.
Earlier this month, Uber reported better-than-expected revenue for the fourth quarter but issued soft profit guidance for the current period, sending the stock down. The company’s strongest revenue growth for the quarter was in its delivery business, which started with restaurants and now includes groceries and retail.
Uber’s expansion into new markets has turned it into the dominant U.S. ride-hailing company. Its market cap currently sits at $146 billion, while Lyft is valued at just over $5 billion. Within food delivery, Uber faces competition from companies including DoorDash, which has a market cap of over $71 billion.
SpotHero last announced outside funding in 2019, when it raised $50 million in a round led by Macquarie Capital. The Chicago-based company launched in 2011 and now offers parking at more than 13,000 garages, lots, and valets in over 400 cities in the U.S. and Canada. “Joining forces with Uber will allow us to bring that experience to millions more drivers and make parking a natural part of the Uber platform,” SpotHero CEO Mark Lawrence said.
The acquisition is subject to regulatory approval and is expected to close in the first half of this year.
