Uber will try to limit losses by selling advertisements in its food delivery platform Uber Eats
- Uber is looking for advertisements to support its sources of income
- A report suggests that Uber Eats will place ads from participating restaurants
- It is unclear what the ads will look like or how they will be displayed in the app
- Uber is struggling to stay afloat with its continuing lack of profitability
Uber turns to advertisements in an effort to provide his business with much-needed income.
According to an exclusive report from Tech crunch, Uber is starting to sell ads in Uber Eats, the food delivery platform.
While it is not clear how the ads will work or look, they can help tempt restaurants that participate in Uber Eats to boost sales.
In rival food delivery apps, such as Seamless, restaurants can & # 39; promoted & # 39; buy slots to go to the top of the restaurant, which means that in theory customers will see their products first.
Uber will place ads on its Uber Eats food delivery platform in an effort to expand its revenue sources according to a Techcrunch report (stock photo)
Uber Eats has traditionally earned money by taking a number of orders booked through the platform.
The giant rider has been considering presenting advertisements on the platform since at least December when Techcrunch reported that a test was being conducted for customers in India.
As part of the test, restaurants could also bundle food products that are sold to consumers at a discount in exchange for a promoted placement in the app.
For Uber, new revenue sources from features such as advertisements are downright crucial, as the platform continues to bleed money.
In September, Uber announced that it would merge its food delivery and ride applications into & # 39; the operating system for everyday life & # 39 ;.
That shift followed shortly after ride-hailing giant had posted $ 5.2 billion over a three-month period ending in June – the biggest quarterly loss ever.
CEO Dara Khosrowshahi (pictured above) maintains that the company is on the right track and has even expressed confidence in its business model despite significant losses
Over the past quarter, Uber has slowed down losses, with a loss of $ 1.2 billion, contributing to greater profitability in its primary ride hailing service.
& # 39; Our quarterly results decisively show the growing profitability of our Rides segment & # 39 ;, said Uber chief executive Dara Khosrowshahi this week.
The company is expanding its offerings and going beyond traditional rides in services ranging from scooters and electric bicycles to a planned "flying car" operation.
Uber's offer in its "Rides" earnings category includes motorbikes, minibuses, taxis, and auto rickshaws along with cars.
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