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EMAILED ON December 11, 2018 BY Conor Grant

On the eve of its IPO, Uber unveils a bold, brilliant new business: burrito bundling

Uber revealed plans to build a new advertising system into its UberEats platform, according to TechCrunch. The revamped food delivery service will now allow restaurants to strategically boost sales of their Eats — for a price.

Uber confidentially filed for an IPO last week, and this new new ad-based product launch promises investors a tasty new revenue stream.  

Your burger will now ride with a buddy

Here’s how it works: Uber posts promotional discounts in the UberEats app, offering discounts like “$2 off your order, Share a courier with a nearby order” to drive demand for particular restaurants.

Uber now pools food orders the same way it pools passengers, enabling a wide variety of powerful advertising tools. 

Uber will first offer restaurants rankings boosts in exchange for discounts. But Uber could also use what it calls its “logistics expertise” to sell restaurants data to target new customers, predict demand spikes, and boost rankings.

‘Valuation is higher due to increased demand’

It’s a complicated system, but it provides a straightforward takeaway: Uber has another new way to make money. 

Plus, since the business model is based on advertising, this new revenue stream could quickly grow into a revenue river.

Uber’s untapped advertising business will whet IPO investors’ appetites, positioning the company at the high end of its $75B to $120B valuation range.

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