Uber rolls out ad business to reach more riders
Uber has launched its global advertising unit with the goal of creating a $1bn business within the next two years by displaying promotions within its apps, on top of cars and on the back of seats.
The division, led by former Amazon advertising executive Mark Grether, was formed earlier this year to build on its current ad business, which mostly consists of ads within its Uber Eats app, as well as car-top billboards in a few markets.
Uber’s chief executive Dara Khosrowshahi has said the company was targeting $1bn in gross ad bookings by 2024, on an annualised basis. In the second quarter of this year, the existing ad business had an annual gross bookings run rate of $350mn, Khosrowshahi said during an investor conference last month.
“Ads on tablets in the back seat is a risky proposition. Autoplay video ads are an ad format users almost universally hate, and were a key reason users abandoned taxis in favour of Ubers in the first place.”
This story originally appeared on: Financial Times - Author:Dave Lee
