Uber’s new advertising section aims to increase digital ad income.
Uber Technologies has formed a new advertising section in an effort to diversify its income streams via partnerships with brands and marketers.
The firm, which has 122 million monthly active users worldwide, said on Wednesday that it would offer ad space within its ride-hailing and UberEats applications, as well as in-vehicle digital advertisements, sponsored mails, and retail ads.
“We can engage consumers with communications from businesses relevant to their purchase experiences while they are making purchase choices and waiting for their destination or delivery,” said Mark Grether, general manager of Uber’s advertising section.
The launch comes on the wake of a similar move by competitor Lyft in early August, as the barely profitable ride-sharing startups hunt for new revenue streams.
Uber, which joined the advertising sector in 2019, has said that it hopes to generate $1 billion in advertising income by 2024.
Meanwhile, a new US proposal that would likely discourage gig workers from being recognized as independent contractors is expected to raise expenses for businesses such as Uber and Lyft.
