Morning Markets: As on-demand companies hunt profits, expect more of what we’re now seeing from Uber.
According to a report in TechCrunch, publicly-traded ride-hailing company Uber is working to invest in building an ads business inside of Uber Eats, its food-delivery service.
While an advertising business inside of Eats makes good sense for Uber, in our view, it is better understood from a profit perspective than from a growth orientation one.
Across most metrics, Uber Eats was the second-fastest-growing segment of the company in percentage terms, coming in only behind Freight.
In the third quarter, Uber Eats made up 11 percent of the company’s adjusted net revenue, compared to last year when it made up 7.2 percent of the adjusted net revenue.
It’s clear that Uber Eats is important to Uber’s growth story, as it’s one of the fastest-growing segments in the company while competing in the hot market of food delivery.