Uber Eats expands ads in move to spur grocery business

Uber is expanding its ad offerings on Uber Eats, now allowing consumer packaged goods marketers—including PepsiCo—to highlight sponsored products within the app. PepsiCo was Uber’s exclusive beverage partner for the new Sponsored Items format, allowing the beverage and snacks giant to spotlight its brands including Gatorade, Pepsi, Doritos, Tostitos and PopCorners. Criteo’s Commerce Media Platform will provide the underlying ad technology for the new format. “Delivery is no longer restaurant-based—it’s all-things commerce—and Uber is paving the way for the industry by developing advertising solutions that integrate commerce moments into consumers’ daily lives,” said Brian Gleason, chief revenue officer of Criteo. Uber seems to be trying to gain some market share in the grocery delivery space. Grocery delivery, and ultra-fast delivery, became popular during the pandemic as consumers looked to minimize their social interactions, such as trips to the grocery store. But the boom didn’t last. In March of last year, quick-delivery startups Fridge No More and Buyk folded, while Getir acquired rival Gorillaz. Instacart seems to have weathered the drop in grocery ordering post-pandemic. The grocery delivery company also does convenience and snack deliveries and has added more stores and ad products to its platform. Instacart's advertising products generate a more than 15% increase in sales for brands, according to an internal memo. Uber has enjoyed some recent momentum in its delivery business. It reported this week that first-quarter delivery gross bookings totaled $15.0 billion, up 8% year over year, as quarterly trips increased 24%, reaching 24 million trips per day. Upfronts and NewFronts blog Tracking the latest TV and digital ad pitches Read more here The ad expansion is also the latest addition to Uber’s ad offerings as the company has worked to build out its ad business. In 2020, Uber launched an out-of-home ad division with Adomni, a programmatic advertising platform, and expanded its OOH ads on top of New York taxis. In August 2021, the rideshare company launched display ads in its core app, and that September it hired Mark Grether, the former Sizmek CEO and Amazon executive. Uber this August partnered with e-commerce company Rokt to target users as they check out in the Uber app. Last October, it rolled out another ad format that used first-party data. The company’s recent Super Bowl ad promoted its Uber One membership. “Uber is uniquely positioned to connect brands with consumers at every stage along the path to purchase,” Travis Colvin, Uber’s general manager of new vertical ads, said in a statement. “As investment behind commerce media continues to accelerate in 2023 and beyond, we’re focused on broadening our capabilities to enable CPG brands to unlock the full potential of Uber’s advertising platform. We look forward to expanding the portfolio of products we’re making available to our CPG partners in the months ahead.” The offering is currently available in the U.S. and Canada, and will expand internationally by the end of 2023.

Uber Eats expands ads in move to spur grocery business

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