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Jun 26, 2023

Lyft to display ads in app in effort to boost revenue

An empty Lyft pick-up area is shown as rideshare drivers hold a rally as part of a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers

An empty Lyft pick-up area is shown as rideshare drivers hold a rally as part of a statewide day of action to demand that ride-hailing companies Uber and Lyft follow California law and grant drivers "basic employee rights'', in Los Angeles, California, U.S., August 20, 2020. REUTERS/Mike Blake Acquire Licensing Rights

Aug 10 (Reuters) - Ride-sharing platform Lyft (LYFT.O) will start displaying advertisements on its app, the company said in a blog post on Thursday as it looks to create a more stable source of revenue.

The move will help Lyft, whose business is completely dependent on ride-hailing. Its larger rival Uber Technologies (UBER.N) has a more mature advertising business along with deliveries and freight brokerage.

It will also boost CEO David Risher's plan to turnaround Lyft by maintaining competitive prices and cutting costs, as well as through a potential sale or strategic tie-up for its bike unit.

Lyft said it has also partnered with adtech company, Rokt, to sell advertisement. Its advertising partners include Bilt Rewards, Amazon.com's (AMZN.O) Audible and Comcast's (CMCSA.O) Universal Pictures.

Drivers can also benefit from having an in-car tablet from Lyft Media in their ride, the company said, adding that they can request for the gadget, which will boost their earnings with ad revenue and more tips.

Lyft shares were up about 1% in premarket trading.

Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur

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