Uber buys Berlin-based Blacklane to boost Elite service

Uber is acquiring Blacklane, a Berlin-based startup that provides on-demand, chauffeur-driven vehicle services. The acquisition represents a significant expansion for the ride-hail giant as it moves deeper into luxury and executive travel services. The transaction also marks a notable exit for Blacklane, which was founded in 2011. Since its founding, the Berlin-based startup has raised more than $100 million in funding from a group of investors. These backers include the rental car company Sixt, automotive company Mercedes-Benz, and ALFAHIM, a conglomerate based in the UAE.

The acquisition supports the recently launched Uber Elite service, which is Uber’s luxury service tier featuring chauffeur services and amenities. Uber announced the launch of Uber Elite just a few weeks prior to the acquisition. The service is currently operating on a limited scale, starting in just Los Angeles and San Francisco, with plans to expand to New York City on the horizon. The Elite tier combines chauffeur services with several premium offerings, including in-vehicle amenities, airport meet-and-greets, and 24/7 phone support.

By acquiring Blacklane, Uber connects with a service that already operates in major cities across Europe, the Middle East, Asia, South America, and North America. This geographic reach allows Uber to scale its premium travel offerings across these regions, leveraging Blacklane’s existing footprint in these markets.

Financial terms of the acquisition have not been disclosed by either company. The completion of the transaction remains subject to regulatory approvals, and Uber expects the deal to close by the end of this year.

Why it matters

Uber is acquiring Blacklane to bolster its recently launched ‘Uber Elite’ service, which focuses on luxury and executive travel offerings.