Uber has announced the acquisition of SpotHero, an application developer that provides parking reservation services for busy downtown areas, sports events, and concert venues.
Specific terms of the transaction were not disclosed, but Uber stated on Monday that it plans to introduce a "parking reservation service" powered by SpotHero within its own app, helping users find parking spots for events, various venues, and airport trips.
Uber CEO Dara Khosrowshahi said in a statement, "When people choose to drive themselves, the SpotHero feature in the Uber app will make the experience more convenient than ever, while attracting more users to the Uber ecosystem."
Earlier this month, Uber reported fourth-quarter revenue that exceeded market expectations but lowered its profit guidance for the period, leading to a decline in the company's stock price. The delivery business was the brightest spot for Uber's revenue growth during the quarter. Initially focused solely on restaurant deliveries, the segment has now expanded to include groceries and retail goods.
Through continuous expansion into new markets and regions, Uber has become a leader in the U.S. ride-hailing industry, with a current market capitalization of $146 billion. In contrast, its competitor Lyft has a market value of just over $5 billion. In the food delivery sector, Uber also faces intense competition from companies like DoorDash, which has a market capitalization exceeding $71 billion.
SpotHero last disclosed external funding in 2019, when the company raised $50 million in a round led by Macquarie Capital. Founded in 2011 and headquartered in Chicago, the company now operates in over 400 cities across the United States and Canada, providing parking services for more than 13,000 garages, parking lots, and valet locations.
SpotHero CEO Mark Lawrence stated, "Partnering with Uber will bring our parking services to millions more drivers, while making parking a native feature of the Uber platform."
Uber indicated that the acquisition is still subject to regulatory approval and is expected to be completed in the first half of 2026.