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Starting in June, people hailing an Uber in New York City may be greeted by more than just their driver. JourneyTV, Uber’s in-car ad network, will begin running video ads on the tablets installed in some ride-sharing vehicles across the city. Ads will range from 15-second spots to longer 30-, 60-, and 90-second formats, as well as full-length trailers.
The move builds on Uber’s partnership with T-Mobile Advertising Solutions, which began last year. Through T-Mobile’s acquisition of Octopus Interactive in 2022, the telecom giant supplies the tablets now installed in roughly 75,000 vehicles across the U.S.
Shifting consumer perception
Uber has been building toward rolling out in-car ads for a year, following the New York City Council’s vote to overturn a longstanding ban on in-car ads for ride-hailing vehicles. The law passed last year, opening up a key battleground for marketers to get in front of one of the country’s most valuable media markets, which is home to Broadway and other cultural tentpoles.
“[This] obviously is a very large opportunity with some great cultural moments and events like the US Open and being able to capitalize on that market,” said Jessica Shuraleff, head of U.S. and Canada sales for Uber Advertising.
New York City’s law mandates that companies share at least 25% of ad revenue with drivers. Ride-hailing apps like Uber and Lyft dispatched more than 10,000 trips per day on average last year, according to the city’s Taxi and Limousine Commission. TLC, a longtime critic of backseat ads that previously opposed the council’s measure, said it supports opportunities for drivers to earn more—as long as passengers retain control over the experience.
“Hardworking drivers keep our city moving, and we support opportunities for them to make additional income,” a TLC spokesperson told ADWEEK. “Our rules work to ensure that drivers share in the financial benefits of this new technology, with 25% of the income generated from these screens going into drivers’ pockets.”
T-Mobile has obtained a license from TLC that permits advertisements on its ride-share screens, the company said.
Backseat ads are not new to New Yorkers—yellow cabs have played them since the early 2000s—but they haven’t been popular, with many passengers finding them more irritating than engaging.
Shuraleff said Uber is trying to change that perception with tailored content. Riders and drivers also have the ability to lower the volume or put the screen to sleep.
Uber claims that the initial engagement with ads is promising—98% of JourneyTV ads are viewed to completion. The average view time on ads is close to 120 seconds per ride. This means only 1% to 2% of riders mute the tablet or put it to sleep during the ride, said Shuraleff.
Separate research from IPG-owned Magna last year found that 74% of 1,029 participants surveyed were interested in offers they see during a trip. Nearly 70% said that ads enhanced their ride experience.
Powered by first-party data
Beyond New York, Uber has run more than 150 JourneyTV campaigns in cities like Chicago, Las Vegas, and Boston for 75 brands in categories including CPG, beauty, and finance. Uber declined to name which brands will go live in New York in June.
In one example, coffee liqueur brand Kahlúa ran JourneyTV ads in multiple markets during the fourth quarter. Kahlúa leaned into late-night cocktail culture, running ads across JourneyTV, the Uber app, and Uber Eats. In New York, the ads only ran within Uber’s app. The campaign drove a 188% lift in sales, “far outpacing” typical category benchmarks, according to Shuraleff. The campaign also led to a 7% increase in reservations at featured bars and restaurants. Shuraleff declined to share exact sales results from the campaign.
The screens pull first-party data from Uber and Uber Eats to target contextual ads and experiences, like restaurant recommendations near drop-off points and local event suggestions. Riders can tap on the screen to send offers to their phones without manually punching in their email or phone numbers.
Uber’s data is used to serve relevant content, making for a “very different experience than riders or tourists have experienced in the past,” said Shuraleff.
“It’s something different and will help show that you can create a highly engaged experience by using our strong first-party signals,” Shuraleff added.
