Uber e-commerce partnership supports budding ads business

Dive Brief:

Uber Technologies and AMC Theatres partnered with e-commerce company Rokt to generate more revenue during checkout on their mobile and web platforms, according to a press release.
The tie-up with Uber initially goes live on Uber Eats in the U.S., Canada, Japan and Australia. The app will use Rokt’s machine-learning technology for targeted messages that drive revenue and support its internal ad network.
The deal comes as Uber strives to reach ambitious ad sales targets and competes with rivals like Lyft in the budding media network space. AMC Theatres, which began using Rokt in March, has since reported a significant increase in transactional value, per release details.

Dive Insight:

By using Rokt’s platform, Uber and AMC aim to deliver more relevant messaging at a time when the consumer is most likely to make an additional purchase.

Rokt’s e-commerce solution uses machine learning to serve additional product options and offers to consumers as they are completing online transactions. The aim is to drive incremental revenue, increase basket sizes and win greater customer favor over time through personalized messaging and tactics like loyalty programs.

The partnership could help Uber reach its stated goal of growing its advertising segment to more than $1 billion in revenue by 2024.

“The growth of our advertising business is a strategic priority for Uber and Rokt is the e-commerce technology partner that will help us achieve our ambitious goals,” said Mark Grether, general manager of Uber Ads, in a statement. “This partnership will accelerate our investment in new services designed to fuel the next chapter of advertising across Uber’s in-app and real-world surfaces.”

The move also comes as Uber plans to sunset its free loyalty program, Uber Rewards, in favor of a subscription-based service called Uber One. Uber Rewards shuts down on Nov. 1.

As consumers head back out into the world and business rebounds, ride-hailing companies have been making bigger efforts to monetize their media properties. Earlier this month, Lyft debuted Lyft Media, a media network offering that places ads on digital rooftop screens, in-car tablets and other assets owned by the company, like bike stations.

Concurrent with the announcement of its partnership with Uber, Rokt revealed AMC Theaters has been using its platform to drive revenue and increase customer value through the company’s online and mobile channels since March. According to AMC’s Chief Strategy Officer Mark Pearson, the partnership has increased per transaction customer value “by optimizing each online touchpoint.”