(Reuters) – Ride-sharing platform Lyft will start displaying advertisements on its app to create a more consistent source of revenue, the Wall Street Journal reported on Thursday.
The move will help Lyft, whose business focuses on ride-hailing, while larger rival Uber Technologies 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 partnership for its bike unit.
Lyft plans to incorporate video ads in the app and has partnered with adtech company Rokt to sell ads, the report said, citing Chief Business Officer Zach Greenberger.
The ride-hailing platform did not immediately respond to a Reuters request for comment.
Lyft will also replace static ad displays with digital screens at its bike-share stations and increase the number of in-car tablets and displays on top of cars, the report said.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)
