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Uber unveils new travel and charter products in push to expand beyond ride-hailing

Uber (UBER) is adding travel and charter services to its product slate, as the company doubles down on expanding beyond its core ride-hailing business.

Uber Travel — a feature that's now available in the U.S. and will soon go live in Canada — allows consumers to connect Gmail itineraries to the Uber app, where they'll be able to coordinate rides, flights, and hotel and restaurant reservations. Additionally, Uber Charter is set to launch over the summer, allowing consumers to book party buses, charter buses, passenger vans, and their ilk using the Uber app, marking a notable expansion of Uber's offerings geared towards large groups.

"After two years of pandemic living, 2022 is looking like a sea change. One of the busiest travel seasons is upon us, a record-breaking number of weddings will be held this year, and climate is at the center of the global conversation," CEO Dara Khosrowshahi wrote in the announcement, which also noted that passengers will have a chance to opt for electric vehicles.

In the announcement, Uber also highlighted a range of other new or expanded-upon products, including increased perks tied to its membership program Uber One, the availability of Uber Eats in select stadiums, and expanded opportunities to hail electric vehicles through a feature called "Comfort Electric." The company also revealed that its autonomous delivery program is being tried out in Los Angeles.

CHICAGO, ILLINOIS - MAY 09: Travelers wait for an Uber ride at Midway International Airport on May 09, 2022 in Chicago, Illinois. Uber plans to cut spending and hiring in an attempt slow the company's plummeting stock price, which is down nearly 50 percent for the year.   (Photo by Scott Olson/Getty Images)
Travelers wait for Uber rides at Chicago's Midway International Airport on May 9, 2022. (Photo by Scott Olson/Getty Images) (Scott Olson via Getty Images)

Uber's looking good long-term, analysts say

Earlier this month, Uber reported its Q1 2022 earnings, which several analysts called "solid." Despite the gig economy sell-off that's gripped the market in the last couple weeks, some analysts have recently expressed fundamental optimism about Uber's long-term prospects, including Raymond James analyst Aaron Kessler.

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"We remain positive on the longer-term outlook for Uber fundamentals given ride-share and food delivery adoption rates remain relatively low and improving margin profile," Kessler wrote in a May 4 note.

Still, Uber shares sank despite its decent earnings report. The sell-off for Uber was spurred on by a report that Khosrowshahi plans to cut spending on the company's marketing and incentives. In that email, which was obtained by CNBC, Khosrowshahi added that hiring was a "privilege" and that the company is looking to achieve profitability on a free cash flow basis.

This setback aside, J.P. Morgan analyst Doug Anmuth has said that he believes Uber will emerge from the pandemic with even more going for it.

"We continue to believe Uber is emerging stronger from the pandemic as it focuses on product innovation... and cross-platform advantages," he wrote in a May 5 note.

Anmuth called Uber a "top pick" in that note.

Allie Garfinkle is a senior tech reporter at Yahoo Finance. Find her on twitter @agarfinks.

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