Uber Eats adds new advertising options for CPGs
Sponsored items ads are already helping PepsiCo promote products.
Sponsored items ads are already helping PepsiCo promote products.
Retail media’s growth is continuing across apps. The latest is Uber Eats, which is adding sponsored items to the grocery and shopping experience.
Uber Eats partnered with Criteo Commerce Media to add the new advertising option for CPG brands who are looking to promote brands and products. Sponsored items are listed on search results, similar to how advertising is displayed on Amazon and other marketplaces.
In the coming months, Uber Eats said it plans to launch additional formats, surfaces and markets.
“Uber is uniquely positioned to connect brands with consumers at every stage along the path to purchase," said Travis Colvin, GM of new vertical ads at Uber Eats, in a statement. “As investment behind commerce media continues to accelerate in 2023 and beyond, we’re focused on broadening our capabilities to enable CPG brands to unlock the full potential of Uber’s advertising platform.
PepsiCo served as the alpha partner on the project, which allowed the company to promote brands such as Pepsi, Doritos and Gatorade.
"We are always testing, learning, and experimenting with new platforms to become even more savvy and effective across our ecommerce business,” said Alison Dempsey, head of ecommerce customer marketing at PepsiCo. “...Sponsored Items allows us to connect with Uber customers at the point of purchase, driving awareness and conversion of our brands.”
It’s the latest evolution for Uber Eats from a restaurant-focused delivery service to a full-fledged marketplace offering goods from a vast swath of retailers. The company put a focus on expanding Uber “not eats” last year, and has since advanced capabilities for grocery delivery, as well as grown its assortment through partnerships with stores in convenience and even office categories. On the company’s recent earrings call, CEO Dara Khosrowshahi said advertising was a key and fast-growing piece to the puzzle of the business.
“I think we're executing particularly well algorithmically as it relates to improving our marketplace efficiency on the delivery side, higher percentage of batching orders, and using deep-learning techniques to drive down cost per transaction on the delivery side,” Khosrowshahi told analysts. “You add on top of that our advertising product, which continues to grow at high rates – advertisers are up 70% year on year using our platform.”
Introducing advertising yields additional revenue opportunities for the platform. It also stands to become more valuable as the assortment grows: The more products available, the more sought-after premium space becomes. Plus, the Uber Eats’ data could prove valuable for advertisers across the web, leading to an additional business line.
“Delivery is no longer restaurant-based – it’s all-things commerce – and Uber is paving the way for the industry by developing advertising solutions that integrate commerce moments into consumers’ daily lives,” said Brian Gleason, Chief Revenue Officer of Criteo, in a statement.
Dealboard has funding and M&A updates from ecommerce aggregators and forecasting software.
This week, the aggregator space is active with M&A, IKEA is ready to roll out newly-purchased warehouse management software and Authentic Brands Group acquired a boot icon. Plus, there’s new investment to report for YouTube influencer Emma Chamberlain’s coffee brand and retail forecasting.
Here’s a look at the latest deals:
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”