New Opportunities for Local Businesses with Lyft, Self-Driving Cars and Uber
There are new marketing opportunities opening up for local businesses. This is being termed as pay-per-car marketing. It is a program being tested by Uber and Lyft right now. Here local businesses will be paying for your ride. Just that you need to travel to the locations of these businesses! This will be offered once you have managed to spend the requisite amount at these local businesses. This way local marketing is going to get transformed in a unique way.
This can be regarding a local restaurant willing to pick up your Uber cab fare tab in case you dine there. This way paying for the ride of a customer will increasingly help local businesses to stand out among their competition.
The primary beneficiaries of such a marketing model appear to be restaurants as well as retailers. Just spending a requisite amount on your food or buying a product can make the cab ride free for you.
Uber is testing this deal along with the Uber Offers. Lyft is working in Portland for rolling out such a service.
Presently, it will be possible to avail of these “free” rides only through the ride services’ apps, or else through its partner affiliates. It will soon get integrated with other traditional search methods. Then it will strive for competition in the pay-per-car realm.
It appears that conversion rates for such form of marketing will be significantly higher as compared to other PPC approaches being used for local businesses. The marketing strategy is quite clear. Once the customer has selected the ad and booked an Uber, it is hard to back out as that will cost the customer. In order to validate the ride, purchases of a requisite amount have to be made.
The pay-per-car ads are already being tested and will be out widely by the coming year. The real impact will be seen once the self-driving cars come out on the streets.
Uber and Lyft are looking at developing these self-driving cars in a big way. Here they cut down on the driver as they operate their autonomous vehicles. This way the cost of rides tends to drop dramatically.
Presently the Uber and Lyft drivers are taking home 75 percent of the profit that they get on the fares. With the driver being cut out, Uber and Lyft can significantly drop the ride prices. Hence it becomes more affordable for local businesses for picking up their user’s cab tab to their locations.
This will lead to dramatic growth for Uber and Lyft. It will also mean more pay-per-car ads that will be growing along with them.
When the customer is not busy driving the car, he will spend time on the phone. Now, this turns into additional opportunities for local marketing with regard to these customers who are in transit. There can be a lot of impulses buying this way.
This can be done through the center console as well as the backs of headrests sporting a screen that would be promoting advertisements the entire time customer is in the cab.
Local businesses paying for rides will be able to close the online-to-offline attribution gap regarding local marketing. They would know that the ride was validated through Uber or Lyft. This makes it easy to collate data and analyze it too.