Uber launches a global advertising unit, targeting $1B in annual gross ad bookings by 2024, including by displaying ads within its apps and on top of cars
Uber had already tested restaurant advertising in Uber Eats; the global unit extends that merchant-ad model across its apps and to vehicle-top displays. It turns ride and delivery interactions into a broader set of ad inventory rather than relying on a single food-order surface.
The initiative later broadened into video placements and programmatic Journey Ads, while Uber reported an advertising run-rate above $1B. That progression makes the launch an early move to build a scaled media business alongside transport and delivery.
First-order effects
Uber gains a dedicated advertising business with in-app and car-top inventory, giving merchants and other advertisers more ways to reach riders and delivery customers.
Riders and Uber app users begin encountering advertising across journeys and transactions, while participating drivers’ vehicles become an additional physical ad surface.
Second-order effects
Restaurants that had used Uber Eats ads face a wider set of Uber placements, shifting campaign decisions from search-like food discovery toward cross-app reach.
Lyft is pressured to develop comparable rider inventory; it later began serving in-app ads during the ride lifecycle, including plans for video formats.
Third-order effects
If Uber can sell inventory across ride, delivery, and vehicle surfaces without undermining app use, mobility platforms increasingly resemble retail-media networks monetizing each active customer interaction.
The relevant competitive measure shifts toward advertising revenue run-rate and inventory quality, not only fares, delivery fees, and bookings.
The trend: Mobility and delivery platforms are layering advertising businesses onto high-frequency customer journeys to raise revenue per active user.
“This news reaffirms that Uber is a surveillance company masquerading as a transportation company.” https://www.vice.com/...
@tnewmstweet
Tim Newman on x
The general manager of Uber Advertising says: “Cars will become our next living rooms. We spend eight hours a week in a car; it's a huge advertising opportunity.” https://www.wsj.com/... https://twitter.com/...
@rasmus_kleis
Rasmus Kleis Nielsen on x
Yet another new competitor for publishers when it comes to ads “Uber has launched its global advertising unit with the goal of creating a $1bn business within the next two years” (If they succeed that would be more than 10x ad revenues at the Guardian) https://www.ft.com/...
@supermoonblues
Drea on x
The “safeguard” in the nonsense Targeting Policy which reads like the mess it is: “advertisers must represent and warrant that if they use one of these targeting categories, such targeting will not have unfair consequences, discriminatory effect,or create disparate impact.” https…
@msuiche
Matt Suiche on x
ads everywhere. Blocking ads will become the number #1 use case of VPNs https://twitter.com/...
@evacide
Eva on x
“...one interpretation of the difference between the Kalanick era & the Khosrowshahi era is that the company doesn't want to make that geolocation data more private, but wants to sell it to advertisers instead of giving it away to hackers.” https://www.vice.com/...
@hackylawyer
Elizabeth M. Renieris on x
For all the talk of innovation & disruption, no one in SV can seem to come up with another business model. https://twitter.com/...
@sarafischer
Sara Fischer on x
Uber's retail ad biz (Uber Eats) brings $350 million annually. Now, its launching ads in its main ride-sharing app, and it expects that ad revenue number to grow meaningfully W/ @hopeking https://www.axios.com/...
@quinnypig
@quinnypig on x
There are few things more effective at making something present as “cheap and shitty” than to slap a bunch of ads onto it. https://twitter.com/...
@jakuuire
Joseph-Albert on x
First Netflix, now Uber. Great time to be in ads https://twitter.com/...