Uber Earns $150M From Australian Ads in 2024

Uber is expanding its advertising operations in Australia as part of a push to boost profits, though its increased marketing costs could reduce profit margins amid growing competition.

The ridesharing and food delivery platform introduced advertising in Australia in 2022. Within two years, local ad revenue climbed to $150.2 million. Advertisers are attracted to Uber’s ability to target users based on location and food preferences, helping it outperform rivals like Snapchat, which saw flat Australian revenue at $88.6 million.

Brands can place ads inside the Uber and Uber Eats apps to engage users while they wait for their transport or meal. Restaurants also pay for prominent placement within the Uber Eats interface. Media buyers view Uber’s approach as offering a strong mix of scale, live data and contextual targeting, giving marketers access to over 10 million active users in Australia.

However, entering the ad market has brought rising costs. Uber spent $284.7 million on marketing last year, an increase of almost 50% from 2023. That figure includes sports sponsorships and celebrity-driven campaigns launched across Australia. While advertising provides high margins, it has not yet paid for itself.

Globally, Uber’s advertising business has surpassed $US1.5 billion in sales. This has contributed to the company posting its first global operating profit. Despite that, Uber's Australian business remains large. The company generated $3.8 billion in total revenue and $1.98 billion in gross profit, then reported $21.2 million in net profit after paying nearly $23 million in tax.

Source: Australian Financial Review, Uber, B&T, Adexchanger