In an effort to up its revenue online cab aggregator Uber India is all set to add new streams including platforms which allow brands to advertise. The ride-hailing app held a general meeting on January 29, 2020 where the members of the board passed a resolution thereby allowing the company to add advertising as a new business model, as per regulatory filings sourced by business intelligence platform paper.vc.
"To carry on in India or abroad the business of marketing, advertising and branding for itself or third parties and for this purpose to purchase sell, sponsor, hire, manage, acquire, undertake, hold, provide and promote, publicity or advertising time space or opportunity on internet, broadcasting centre, television centre, hoardings, cabs, electronic display board, cinema cable network, newspapers, magazines, souvenirs and all other present and feature medias or display devices and to do all incidental acts and things necessary for the attainment of objects of the company," said the firm in a statement.
It should be noted that Uber India's main rival Ola already offers advertising partnerships to brands through Ola Play. The brand has partnered with brands as well as media houses to provide their riders with visual streaming options during the ride. Following the same strategy, Uber will now leverage its digital footprint to advertise through internet, broadcasting centre, television centre, hoardings, cabs, electronic display board, cinema cable network, newspapers, magazines, souvenirs and all other present and feature medias or display devices.
Besides Ola, other cab services such as Meru also allows brands to advertise on the cab. "Uber India is set to become yet another marketplace for media buying and selling as the ride-hailing company opens itself and its collaterals up to advertising," Nikhil Kanekal, analyst, paper.vc, said.
Uber India Systems' reported a 63.41% rise in profits to Rs 43.24 crore in FY19, according to the company's RoC filings.The company's revenue from operations grew 71% to Rs 891.85 crore while expense recorded a rise of 67.59% to Rs 826 crore in FY19 as compared to Rs 492.91 crore in FY18.