• Search Engine Land
  • Sections
    • SEO
    • SEM
    • Local
    • Retail
    • Google
    • Bing
    • Social
    • Resources
    • More
    • Home
  • Follow Us
    • Follow
  • Search Engine Land
  • SEO
  • SEM
  • Local
  • Retail
  • Google
  • Bing
  • Social
  • Resources
  • Live
  • More
  • Events
    • Follow
  • SUBSCRIBE

Search Engine Land

Search Engine Land
  • SEO
  • SEM
  • Local
  • Retail
  • Google
  • Bing
  • Social
  • Resources
  • More
  • Newsletters
  • Home
Local

Uber Eats readies ad sales for restaurants

Could it become a rival to Google and Yelp over time?

Greg Sterling on November 6, 2019 at 3:16 pm
  • More

Ads are coming to Uber Eats. TechCrunch reported that Uber is seeking an executive to help develop and run a new ads business.

Under pressure. This makes sense for several reasons. Restaurants have been conditioned by other ad platforms, including Google and Yelp, to pay for placement and exposure. And Uber is under significant pressure from investors to generate more revenue from more sources amid growing skepticism about the company’s capacity to turn a profit.

Uber Eats competes primarily with GrubHub, DoorDash and Postmates – although Google My Business also offers food ordering, as does Yelp. According to one estimate, Uber Eats has 20% share of all restaurant delivery sales in the U.S. DoorDash has 34% and GrubHub has 30%, while Postmates has 10%.

Heading toward $2 billion. There are multiple estimates of the value of the global food delivery market. They vary wildly, but the market is worth many billions of dollars without question. Uber Eats generated $1.13 billion in gross revenue on $6.45 billion in gross bookings for the first six months of 2019. Net revenue was $576 million.

Uber CEO Dara Khosrowshahi said on a recent earnings call, “We continue to be the number one and number two player in online food delivery category in multiple geographies, including the U.S., Japan, France, Mexico, Australia, New Zealand.”

Advertising could ultimately add hundreds of millions of dollars to the top line for Uber Eats. Yelp, for example, had roughly $943 million in revenues in 2018, not all of which is advertising. However, Restaurants and Home Services are the company’s two strongest verticals. Yelp only sells ads in North America, while Uber Eats operates in more than 500 cities globally.

Why we should care. Uber’s revenue from its primary business, ride-sharing, was $3.1 billion in the second quarter. Accordingly, Uber Eats could become a significant business and contributor to revenue.

The more interesting question from a market and marketer perspective is whether Uber Eats could ultimately become a destination for restaurants generally and rival Google and Yelp over time as a platform for restaurant promotion and advertising.


Opinions expressed in this article are those of the guest author and not necessarily Search Engine Land. Staff authors are listed here.



About The Author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Related Topics

Channel: LocalGoogle: Google My BusinessYelp

We're listening.

Have something to say about this article? Share it with us on Facebook, Twitter or our LinkedIn Group.

Get the daily newsletter search marketers rely on.
See terms.

ATTEND OUR EVENTS

Lorem ipsum doler this is promo text about SMX events.

February 23, 2021: SMX Report

April 13, 2021: SMX Create

May 18-19, 2021: SMX London

June 8-9, 2021: SMX Paris

June 15-16, 2021: SMX Advanced

August 17, 2021: SMX Convert

November 9-10, 2021: SMX Next

October 2021: SMX Advanced Europe

December 17, 2021: SMX Code

Available On-Demand: SMX

×


Learn More About Our SMX Events

Discover actionable tactics that can help you overcome crucial marketing challenges. Our next conference will be held:

MarTech 2021: March 16-17

MarTech 2021: Sept. 14-15

MarTech 2020: Watch On-Demand

×

Attend MarTech - Click Here


Learn More About Our MarTech Events

White Papers

  • Digital Marketing Report Q4 2020: Benchmarks and Insights for 2021
  • Data SEO – The Next Big Adventure
  • Getting Started with Email Marketing Automation
  • The State of Local Marketing Report 2020-2021
  • Quality CRM Data: The Key to Delivering Great Customer Experiences
See More Whitepapers

Webinars

  • How to Avoid the Digital Transformation Trap
  • How to Build a Marketing System of Record
  • Meet BIMI: The brand-boosting email security marketers must have for 2021
See More Webinars

Research Reports

  • Local Marketing Solutions for Multi-Location Businesses
  • Enterprise Digital Asset Management Platforms
  • Identity Resolution Platforms
  • Customer Data Platforms
  • B2B Marketing Automation Platforms
  • Call Analytics Platforms
See More Research

h
Receive daily search news and analysis.
Search Engine Land
Download the Search Engine Land App on iTunes Download the Search Engine Land App on Google Play

Channels

  • SEO
  • SEM
  • Local
  • Retail
  • Google
  • Bing
  • Social

Our Events

  • SMX
  • MarTech

Resources

  • White Papers
  • Research
  • Webinars
  • Search Marketing Expo
  • MarTech Conference

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff
  • Connect With Us

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • Instagram
  • RSS
  • Youtube
  • iOS App
  • Google Play

© 2021 Third Door Media, Inc. All rights reserved.

Your privacy means the world to us. We share your personal information only when you give us explicit permission to do so, and confirm we have your permission each time. Learn more by viewing our privacy policy.Ok