Listen : Audio version of this article
Uber is famous for its well-known ideas and initiatives that have shaped many industries today. As the company has made a new deal with the ad-tech company Adomni, there are many interesting things to expect.
Uber has announced recently that they are planning to place ads on the roof of some of their vehicles. This can be a successful thing for a company like Uber since this can generate some new revenue. Adweek reported that Uber made a deal with Adomni, which will introduce ads to some of Uber’s vehicles in several cities. The implementation of the new idea will start on April 1st.
Since the drivers will have little to no control over the ads installed on their vehicles this can lead to some serious problems.
One of the main issues that are predicted to come from this decision is the interaction with other countries where Uber operates. As we all know the company is an international business, therefore it needs to tweak its business practices in each market. One of the biggest issues is considered to appear in countries that have some kind of restriction on various industries. One of these countries is Norway. In this particular market, there’s a restriction on the iGaming industry, which is evidently one of the biggest consumers of ads. Because of this, Norwegian authorities are worried that new bookmakers in Norway in 2020 are going to utilize this feature from Uber and place their advertisements on the vehicles until the new feature is incorporated into local law. The same can be said about almost every single country where Uber is present.
It is hard to say how Uber would react, but Uber has proved in the past that for a certain amount of income, they are ready to violate some regulations. This can create several problems in many countries that have specific regulations about advertisements as well.
Before this, uber drivers had the opportunity to place ad displays on top of their vehicles using third-party companies. This is the very first time that the company announced that they would use their won ads. During the initial rollout, it is said that 1,000 vehicles will feature rooftop ads.
Also, it was announced recently that Cargo would go for car-top advertising soon. Cargo is a New York-based startup, selling snack boxes to passengers. It was founded in 2016 and was offering products that Uber and Lyft drivers could sell to passengers.
The ad display of Uber will respond to both location and time. As Adweek wrote, the advertisements will be geofenced and will also have the ability to sync with other Adomni-managed displays. This means that you could be seeing all the cars and billboards showing the same ads at the same time.
Since the company does not own the cars, drivers would have to get something out of installing the ad displays. As was reported, drivers in three cities, Phoenix, Dallas, and Atlanta will get $300 to install the displays and additional $100 each week they drive more than 20 hours. It was also said that starting from April 1st, drivers will be paid according to the hours they drive. It is unknown what kind of displays they are, and the information about the possibility of damaging drivers cars is also not known.
Lyft is another company that has recently started working with a new company called Halo Cars. They already let drivers earn money by installing rooftop ads on their vehicles.
Uber is not the only company that is interested in ads. There are several other companies coming up with new ideas about advertisements. When it comes to international companies it is very important that they keep in mind the regulations in different countries, since it could lead to a lot of problems.