Uber Eats’ move to formally sell ads could improve its margins

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 07, 2019, 2:18 AM UTC

Eats’ increasing popularity makes it lucrative for advertising.

Aimed at helping customers discover new foods and restaurants and growing their customer base, Uber Eats is now selling ads within the app. The company had recently been hiring for an “Uber Eats Ads Lead”.

The move to sell ads has since been confirmed by a company spokesperson. According to the article, selling ad space on Eats could help Uber improve its margins, where it takes only 10.7% of gross bookings under adjusted net revenue.

Eats’ ad potential arises from its place “as a destination for choosing what to eat, not just ordering it.” Uber could attract more users who are open to suggestions, that restaurants pay to provide while Uber Eats is cross-promoted within the parent Uber app.

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