Uber Wants To Put Ads On Top Of Vehicles Like Taxi Cabs
If you use Uber for transportation, you will begin seeing digital advertisements on the top of Uber vehicles.
The ride-sharing company recently signed a deal with Adomni to join its ad network, and Uber will soon allow its drivers to place digital signs on top of their cars.
The digital signs let advertisers promote their products and services while Uber vehicles drive through the city.
A Move to Save Uber
Many people believe Uber’s move to implement the new advertising platform is an attempt to save the company from going under.
When it first launched, Uber promoted itself as a cheaper and more convenient way for customers to get transportation. But undercutting standard Taxi services came at a price.
Uber struggles to remain profitable and often loses more money than it gains.
In fact, Uber lost $5 billion in a single quarter in 2018. Uber sees the most profit loss through the Uber Eats service.
By placing signs on its cars and selling ad space to a range of businesses, Uber has a chance to make up for its losses and become much more profitable.
Good News for Uber Drivers
Offering low prices means that Uber can’t afford to offer high wages to its drivers.
While some Uber drivers are pleased with the income they generate, not all of them feel that way.
Many drivers gave up on the ride-sharing service because they don’t believe they earned anything after accounting for vehicle wear, fuel costs and taxes.
In the first stage of joining the advertising network, Uber will pay drivers $300 to install the digital signs and an additional $100 for each week they drive for more than 20 hours with the sign on.
Drivers in Atlanta, Dallas and Phoenix can place the signs on their cars for an income boost starting April 1.
Uber’s Decision to Go Public
Although Uber launched in 2009, it did not go public until May 2019. Becoming a publicly-traded company allows Uber to attract investors, increase its working capital and expand its business model.
The problem, though, is that many of Uber’s competitors went on the offensive and tried to limit Uber’s profit margins even more.
For example, Lyft began offering additional discounts to its customers after learning of Uber’s plans to sell stocks on the public market.
This problem worries some investors and might stop them from investing in Uber, making it even more difficult for the ride-sharing company to become profitable.
If the pilot phase of the ad network goes as planned, it could turn things around and put potential investors at ease.
How the Ad Network Works
For now, the digital signs on Uber cars only display government-sponsored advertisements, but that’s going to change soon. Uber will allow companies to place ads starting April 1.
When a company is ready to place an advertisement, it will order the ad and choose an eight-second image or a video.
Adomni will then automatically distribute the advertisement through its network, and the digital signs connect to a central server so that they can download the images and videos to display.
Looking Forward
While the digital signs will only be available to drivers in three cities during the pilot phase, it might not be that way forever.
Uber will likely implement the digital signs across the nation as long as everything goes well during the test stage.
In addition to seeing Uber use the advertising network to boost its profit, other ride-sharing companies will likely do the same so that they don’t fall behind the trend.
