If you live in Delhi or Mumbai, you may soon have to watch advertisements while you travel in Uber?cabs.
As part of a global rollout, ride-hailing app Uber?is piloting in-car tablets to show?ads?and value-added services to riders.
These tablets will be?fixed behind the front seat facing the rider and are a way of monetising and creating additional revenue streams by showing ads to users, as per the ET report.
"A lot of critical engineering work for this pilot is being done by the Indian engineering team and it is a global product," said a source aware of the matter, adding that the tablets will first be installed in cabs in the United States before being brought into markets like India.
The company can show third-party ads and also cross-sell other services like Uber Eats.?¡°You can sell food coupons for the airport food court if you are on the way to the airport,¡± said the source.
An Uber spokesperson reportedly confirmed the development?but did not share further details as the project is at an early stage. Uber¡¯s competitor Lyft had said last month in August that it would set up a media division to monetise users through in-car ads.
Uber¡¯s efforts come as various tech companies across sectors are increasingly focusing on advertising revenues. As per the report, e-commerce giant Amazon, for example, generated more than $30 billion?in 2021 from ads alone.?This?Uber?pilot programme comes after its increased focus on tapping into India¡¯s engineering talent?for global needs.
In 2016, ridesharing company Ola launched a similar service called Ola Play.?,?which had music and other value-added services.?Ola Play?cabs were listed separately on the?Ola app and reportedly had a higher fare. The report mentioned that it is no longer displayed on the app, and sources said Ola Play had been shut down.
Also Read:?Uber?Will Cut Down On Costs, Treat Hiring As A 'Privilege', Says CEO
Last year, in September 2021, Uber hired former Amazon executive Mark Grether to lead the company¡¯s $1 billion advertising efforts. Grether had reportedly told investors that?Uber sees three avenues to place ads - in-app, in-car, and outside the car -on the roof.
As per the ET report,?installing the tablet?also encourages more stickiness among drivers to use Uber¡¯s app, rather than switch between rival apps, as some of the proceeds from the ad revenue can be passed on to the?driver, a source said.
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