Uber Rival Also Caves In To In-App Advertising For Revenue Boost

Ride-hailing platform Lyft Inc LYFT said on Thursday that it will start displaying advertisements on its app days after it reported a near 5% slump in revenue per rider in the second quarter.

What Happened: Advertisements will be added to the company’s network of advertising products enabling brands to engage with hundreds of millions of Lyft rides every year, the company said in a blog post.

"Lyft has a captive audience throughout their entire ride journey – waiting for their car, matching with their driver, and in ride – and brands can now reach riders in relevant and tailored ways across our suite of Lyft Media products." said Chief Business Officer Zach Greenberger.

Riders will now see ads on their estimated time of arrival (ETA) screen, when they match with a driver and during their trip. The company’s current advertising partners include Bilt Rewards, Audible, and Universal Pictures, among others.

Why It Matters: For the second quarter, Lyft reported a net loss of $114.3 million and a revenue of $1.021 billion.

Despite active riders in the second quarter jumping 8.2% year-over-year to near 21.5 million, revenue per active rider fell 4.8% from $49.89 to $47.51.

Lyft rival Uber Technologies UBER already advertises in-app.

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Read More: No Rest For The Self-Driving: Google Waymo, GM Cruise Now Operational 24/7 In San Francisco

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