Lyft hopes the brand new promoting merchandise can generate income and assist it compete towards rivals like

Uber Applied sciences Inc.,

which entered the media enterprise in 2019, when it began promoting advertisements by its Uber Eats app. Uber later started providing advertisements atop its vehicles and inside its major ride-hailing app.

Past the rooftop advertisements, Lyft will now enable manufacturers to serve content material on in-car tablets that riders can use to trace their routes, tip and price drivers, and management the music in every automobile. Lyft has been testing that service in Los Angeles in current months and expects to supply it in 25% of all rides by year-end in Los Angeles and three different cities, in keeping with a spokeswoman.

The corporate can also be promoting advertisements on digital show panels at docking stations for bike-share companies it owns, together with New York’s Citi Bike and San Francisco’s Bay Wheels, a spokeswoman mentioned.

Lyft has additionally been providing in-app sponsorships that embrace banner advertisements and branded icons. In a single early instance,

Vita Coco Co.

ran a marketing campaign referred to as “The Hangover Store” on the day after Tremendous Bowl LVI, changing all automobile photos within the Lyft app with coconuts, mentioned Vita Coco Chief Advertising and marketing Officer Jane Prior.

Lyft will work with third-party corporations to assist advertisers measure marketing campaign efficiency utilizing combination information, however received’t acquire private information from riders, mentioned

Kenan Saleh,

normal supervisor of Lyft Media and former chief government of Halo. Concentrating on for app, pill and rooftop advertisements shall be primarily based on the time and placement of journeys, and riders can flip the tablets off at any time, although fewer than 1% have accomplished so in take a look at research, Mr. Saleh mentioned.

A portion of income from the show and pill advertisements will go to Lyft drivers, although the corporate declined to say how a lot.

“We hope to offer a spot for advertisers and drivers to interact with our community, whereas in the end offering unbiased alternatives for drivers to earn cash,” mentioned Mr. Saleh.

Lyft’s chief rival has bold plans for its personal advert enterprise.

Mark Grether,

normal supervisor of Uber promoting, advised attendees on the firm’s most up-to-date investor day in February that it may attain $1 billion in advert income by 2024, and Chief Govt

Dara Khosrowshahi

mentioned on Uber’s most up-to-date earnings name that the corporate would proceed increasing its advert gross sales crew.

Lyft declined to touch upon anticipated advert income.

Different firms have additionally entered the ride-hailing advert enterprise lately. Final 12 months, out-of-home promoting firm Firefly Methods Inc. acquired Curb Taxi Media, which sells advertisements atop taxi cabs. Curb Mobility LLC, the corporate that beforehand owned Curb Taxi Media, runs advertisements on TVs inside taxis and consists of greater than 25,000 screens producing 174 million month-to-month advert impressions across the U.S., mentioned

Jason Gross,

vice chairman of cellular at Curb Mobility.

Telecommunications big

T-Cell US Inc.

in January acquired Octopus Interactive Inc., which runs interactive video screens in Uber and Lyft autos to increase its promoting know-how enterprise. A T-Cell spokeswoman mentioned this service at the moment reaches 10 million riders every month, although she declined to offer advert income totals. Lyft mentioned this enterprise is unrelated to Lyft Media.

Lyft has not too long ago tried to chop prices by shedding 2% of employees and folding the a part of its enterprise that allowed customers to hire vehicles on the app. Final week, the corporate reported stronger-than-expected income within the second quarter, which President

John Zimmer

attributed partially to cost-cutting measures.

Demand for ride-hailing companies has remained robust regardless of the financial downturn, with inflation main extra individuals to complement their earnings by changing into drivers, mentioned Mr. Khosrowshahi on Uber’s earnings name.

Corrections & Amplifications
Out-of-home promoting firm Firefly Methods Inc. acquired Curb Taxi Media, which sells advertisements atop taxi cabs, in 2021. An earlier model of this text incorrectly said that Firefly had acquired Curb Mobility, the previous dad or mum firm of Curb Taxi Media, which runs advertisements on TVs inside taxis. Additionally, Curb Mobility’s community consists of greater than 25,000 screens inside taxis producing 174 million month-to-month advert impressions across the U.S. An earlier model of this text incorrectly implied the numbers pertained to Curb Taxi Media. (Corrected on Aug. 9)

Write to Patrick Espresso at [email protected]