While most of the popular services round the globe are making attempts to explore more profits from the market, Uber is no exception now. And more so after the $1Bn+ loss that the company most recently posted. As per a report from TechCrunch, the ride hailing behemoth is all preparing to host ads on its Uber Eats platform.
Uber has posted an opening for Uber Eats ad lead and the job posting reads;
“As this is a brand new space for Uber, you will be responsible for defining the vision for this new product area and determining where to start building.”
A spokesperson has further confirmed that the company would be entering the ad market and they are exploring relevant ads in Eats. So, expect to see few paid suggestions popping up your screen while ordering food from Uber Eats soon.
Advertising stream appears to be a good option for Uber, considering their marginal 10.7% take from the placed orders as a revenue, after paying to restaurants and drivers. Evidently, the ads inclusion is more inclined towards profit generation, looking back at increasing loses with Eats and the dwindling share prices the company is witnessing over time. Uber’s share price closed at $28.02 yesterday, which is 40% less than the $46.38 it priced in June.
Though no details have been revealed as to how these ads will appear on the Eats app, it is assumed that they may appear on the home page or while searching for any particular cuisine or restaurant.
This also the very first time Uber is going to include external ads in any of its services. This new ad-driven platform will be separate from the intra-brand marketing that the company currently does. They have been promoting Eats in their core ride hailing app, and if the ads transcend their as well, the revenue may get an extra boost. If the experiment with ads proves to be a success for Uber, it is safe to assume that other similar companies will also include it in their module.