uber-advertising

Uber Ad Business Generated $350 Million In Q3 2022

This quarter Uber’s advertising generated $350 million!

For some context, Pinterest’s only revenue stream is advertising, which generated $684 million in the same period.

Recently, Uber launched a new ad format for brands to connect with consumers throughout the ride or delivery process.

Uber is shooting to generate over a billion dollars of advertising revenue by 2024.

As Uber explained:

”We have a global audience of valuable, purchase-minded consumers who, as part of our core business, tell us where they want to go and what they want to get,”

Said Dr. Grether, General Manager, for Uber’s advertising division, further explained:

“Through our advertising division, we can help leading brands grow their relationships with consumers by connecting them at a moment when a customer is uniquely attentive. By tapping into our mobility media network, our pilot campaigns have surpassed expectations in terms of brand lift, engagement, and other campaign goals. We’re eager to continue working with our partners to identify best-in-class offerings – such as in-car tablet advertising – that will ensure they’re engaging with captive and engaged audiences.”

uber-eats-revenue-q3-2022
Uber Eats generated $2.77 billion in revenues in Q3 2022, compared to $2.24 billion in Q3 2021. The take rate for Uber Eats was 20.2% in Q3 2022, vs. 17.4% in Q3 2021. Uber Eats posted $13.68 billion in gross bookings in Q3 2022 vs. $12.83 billion in Q3 2021.
advertising-industry
The hidden revenue generation model is among the most profitable patterns for business models built on advertising. In fact, businesses like Google and Facebook have managed to gain more than $290 billion in 2021 from advertising on their platform, even though many users might not be aware of the mechanisms that drive those platforms.

Connected Business Models

Uber

uber-business-model
Uber is a two-sided marketplace, a platform business model that connects drivers and riders, with an interface with gamification elements that make it easy for two sides to connect and transact. Uber makes money by collecting fees from the platform’s gross bookings.

Uber Eats

uber-eats-business-model
Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay small delivery charges, and at times, cancellation fees; Drivers earn through making reliable deliveries on time.

DoorDash

how-does-doordash-make-money
DoorDash is a platform business model that enables restaurants to set up no-cost delivery operations. At the same time, customers get their food at home, and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace.

Glovo

glovo-business-model
Glovo is a Spanish on-demand courier service that purchases and delivers products ordered through a mobile app. Founded in 2015 by Oscar Pierre and Sacha Michaud as a way to “uberize” local services. Glovo makes money via delivery fees, mini-supermarkets (fulfillment centers that Glovo operates in partnership with grocery store chains), and dark kitchens (enabling restaurants to increase their capacity).

GrubHub

grubhub-business-model
Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. cities and London. The Grubhub portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, and Tapingo. The company makes money primarily by charging restaurants a pre-order commission, and it generates revenues when diners place an order on its platform. Also, it charges restaurants that use Grubhub delivery services and when diners pay for those services. 

Instacart

how-does-instacart-make-money
Instacart’s business model enables an easy setup for grocery stores, the comfort for customers to get their shopping delivered at home, and an additional income stream for personal shoppers. Instacart makes money by charging service fees via memberships and running performance advertising on its platform.

Lyft

lyft-business-model
Lyft is a transportation-as-a-service marketplace allowing riders to find a driver for a ride. Lyft has also expanded with a multimodal platform that gives more options like bike-sharing or electric scooters. Lyft primarily makes money by collecting fees from drivers who complete rides on the platform.

Postmates

postmates-business-model
Postmates is a food delivery service built as a last-mile platform connecting locals with shops. Postmates collects fees (commission, delivery, service, cart, and cancellation fees). It also makes money via its subscription service (called Unlimted – $9.99/month or $99.99 annually), giving free delivery on orders of more than $12.
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