In a significant resurgence post-pandemic setbacks, ride-hailing services are poised to witness a record-breaking surge in users in 2023, signaling a robust recovery for the industry. Notably, this resurgence is accompanied by a noteworthy increase in sales, with each rider embarking on more journeys.
The favorable trajectory of rising usage holds promising prospects for industry leaders Lyft and Uber, particularly as they gear up to introduce a slew of new advertising options. According to Insider Intelligence’s Ride-Hailing 2023 report, a staggering 77.6 million individuals in the United States are anticipated to embrace the convenience of Uber or Lyft in the upcoming year.
The forecast further predicts that Uber is set to achieve a remarkable milestone with 54.4 million users in 2023, establishing a new record. Simultaneously, Lyft is poised to hit its milestone, projecting 33.5 million users in 2024. Bolstering this positive outlook, both Uber and Lyft recently disclosed encouraging earnings reports. Uber showcased a commendable surge in advertising revenues, while Lyft continued to fortify its in-app advertising capabilities.
Recognizing the immense potential in the advertising landscape, both Uber and Lyft are actively diversifying their advertising formats, spanning from innovative backseat displays to in-app advertisements. The report emphasizes the need for marketers to closely track these developments, especially as both platforms advance in maturity.
While Uber currently leads the advertising ecosystem, the expanding user base for both services signals a growing and dynamic audience, providing advertisers with an expanding canvas for engagement. As these ride-hailing giants venture into new territories, advertisers stand to benefit from an increasingly diverse and receptive user demographic.
As mentioned in the company’s latest earnings call, Lyft introduced in-app advertising to enhance its media network in August. Seeking to increase advertising investments by showcasing its rides as prime opportunities for brands to engage with attentive audiences.