According to a report by TechCrunch, Ads are coming to Uber Eats. Uber is seeking an executive to help develop and run a new as business.
There are several reasons why this would make sense, as restaurants have been conditioned by ad platforms (such as Yelp and Google) to pay for placement and exposure. Uber has been under a lot of pressure from investors to generate more revenue from more sources amid growing skepticism about the company’s ability to turn a profit.
Uber Eats’ main competitors includes DoorDash, GrubHub and Postmates. Uber Eats, according to one estimate, Uber Eats has 20% share of all restaurant delivery sales in the U.S. DoorDash has 34% and GrubHub has 30%, while Postmates has 10%.
Uber Eats has generated $1.13 billion in gross revenue on $6.45 billion in gross bookings for the first half of 2019, while their net revenue totaled #576 million
Uber CEO Dara Khosrowshahi said on a recent earnings call, “We continue to be the number one and number two player in online food delivery category in multiple geographies, including the U.S., Japan, France, Mexico, Australia, New Zealand.”
With advertising, hundreds of millions of dollars could be added to the top line for Uber Eats.