Advertising arrives in Ubers, “to keep prices low”


$1 billion a year by 2024. That’s how much Uber hopes to earn from advertising. The ride-hailing giant has just embarked on a major initiative to generate a new source of revenue. The American company does not do things by halves and has also entrusted this project to Mark Grether, the former advertising manager at Amazon.

Uber, Lyft and Instacart, new advertising eldorado?

How will these efforts materialize? Uber notably plans to display advertisements on its applications, but also on the roof of the cars and on the back of the seats. The company will also offer advertisers to send emails to its 122 million registered users worldwide.

Quoted by FinancialTimesMark Grether is delighted: “ Through our advertising division, we can help major brands develop their relationships with consumers by connecting them at a time when a customer is particularly attentive. “.

However, it will be necessary to convince the customers who will not necessarily be delighted to be targeted during their journeys. In any case, this is the view of Andrew Lipsman, an expert with the Insider Intelligence advertising research group. He warns:

Advertising on back-seat tablets is a risky proposition. Autoplay video ads are an ad format that users almost universally hate, and it’s one of the main reasons users ditched taxis for Uber in the first place.

But Uber has serious arguments to convince them. Andrew Macdonald, head of mobility at Uber, explained to the economic daily that the pub will be a way to reduce the course of journeys without having to cut back on the income of drivers. A kind of win-win contract that would therefore benefit everyone, and especially Uber.

In any case, the American company has fallen behind some of its rivals, including DoorDash, Instacart and Lyft, which already generate substantial revenue through advertising. This trend also responds very clearly to a demand from advertisers.

As Apple and Google privacy measures restrict the targeting capabilities of major social networks, brands are looking for new ways to reach consumers. Delivery and ride-hailing companies, which have relevant data on their customers, therefore become very relevant in the context of these strategies.


By: Uber Technologies

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