Lyft announced the launch of Lyft Media, a new digital advertising business unit with the potential to add billions to its bottom line.
The company announced on its blog on Monday that Lyft Media will help cash in on the fast-growing market for in-car digital ads as cars become more connected, often with multiple, larger infotainment screens. The newly created business unit will also maximize Lyft’s revenue across its mobile app, rooftops, and bicycles.
The news comes just days after Lyft and its biggest competitor, Uber, both announced impressive second-quarter financial results.
Related | TikTok Tests A New Way To Keep You Engaged: Video Games
Lyft knows that the ad business can be a solid way to increase its bottom line. Uber, which entered the media business back in 2019, first via UberEats and then across its rooftops and ride-hailing app, claims its advertising business could reach $1 billion in revenue by 2024.
Lyft’s blog post outlines a four-fold plan for raising ad revenue and competing against rivals.
“Our vision is to build the world’s largest transportation media network, delivering value to advertisers while also elevating the platform experience for riders and drivers,” the post read.
According to Techcrunch Lyft made its first digital ad play with the 2020 acquisition of Halo Cars, which makes the rooftop screens that run digital ads. The company already uses Halo screens to show location- and time-targeted ads on some of its rideshares in New York City, Los Angeles, and Washington D.C. with plans to expand to other cities.
Lyft also shows ads on the in-car tablets that allow riders to track their route, rate and tip drivers, and control the music through Lyft’s partnership with iHeartRadio. Lyft said it plans to roll out the service to 25% of its rides in Los Angeles, Chicago, San Francisco, and Washington DC to reach millions of riders by the end of the year.
Finally, the company also looks to its mobile app as a channel capable to help brands reach almost 20 million active users, as well as its bikeshare ad panels and docks, as well as directly on its next-generation e-bikes.
Lyft said that a portion of the ad-generated revenue from in-car ads will be shared with its drivers, but did not clarify how much or what percentage drivers would get.
You might also like
More from Tech
TikTok Begins Testing Tako, Its Own AI ChatBot
TikTok Tako is a new AI chatbot that could “radically change search and navigation” in the app. News of the test …
MissJourney AI: Fighting Biased Gender Stereotypes
Missjourney is an AI tool that generates images exclusively of women, from CEOs to leaders, superheroes, doctors and engineers. TEDxAmsterdam Women …
Google Product Studio Lets Merchants Create Product Imagery With Generative AI
Google is launching Product Studio, a new tool that lets merchants create product imagery for free, using generative AI. Google Product …
The OFFICIAL ChatGPT App Launches On iOS
OpenAI is launching an official ChatGPT app for iOS, sending a warning to all the unofficial apps out there. Finally. Months …
Puro Sound Labs launches New “Best Headphones For Kids”
Puro Sound Labs is launching the new BT2200 Plus, widely recognized as the best headphones for kids. The BT2200 Plus follows …
LG Launches Its Giant 49-Inch UltraGear Curved Gaming Monitor
LG's new UltraGear curved gaming monitor aims to compete directly with Samsung’s Odyssey G9, as it beats it on price …
Cala Is A New Web App That Dares You To “Swipe Left” On Meetings
Dubbed the “Tinder for canceling meetings,” Cala web app dares you to swipe left on useless meetings. Cala is a free …
New Beats Studio Pro Headphones Revealed In iOS Beta
The new Beats Studio Pro headphones could replace the aging Studio 3, adding personalized spatial audio to the Beat's lineup. 9to5Mac …