inDrive users may start getting in-app ads as company begins “super app” strategy

Users of the popular ride-hailing platform, inDrive, may start getting pop-up ads on the app. This is because the company has announced that it is introducing in-app advertising across its Top 20 markets, according to a TechCrunch report.

According to the report, the company, which is expanding its grocery delivery service, is building new revenue streams and boosting engagement while sustaining growth in price-sensitive markets like Nigeria.

Although the company’s Nigerian representatives are yet to respond to inquiries concerning the development, reports indicate that the company is looking to widen its tentacles beyond ride-hailing in a bid to execute its super app strategy in 2026.

Mark Loughran, inDrive President

In recent years, inDrive has emerged as one of the leading ride-hailing companies in Nigeria. The company was able to achieve this through a price-bidding model that basically allows riders to negotiate fares.

In an economy like Nigeria, with low purchasing power, the app soon became the platform for cheaper rides, with drivers competing for rides, sending fares even lower. This keys into the company’s policy of offering affordable rides.

See also: e-Hailing drivers accuse inDrive of double taxation, reject FG’s 7.5% VAT

Nonetheless, it still faces stiff competition from other giants of the industry, especially Bolt. e-Hailers also face the stiffest competition from traditional transportation means like mass transit buses, vans, mini buses, tricycles and even motorcycles.

And since they are not transport companies in the real sense of it, their revenues depend largely on commissions, which are hardly enough, especially in emerging markets like Nigeria.

inDrive in-app ads and the Nigerian market

InDrive’s introduction of ads only ties into its “super app” strategy, which aims at adding higher-frequency services, which also include grocery delivery in frontier and emerging markets. For instance, advertising offers a high-margin revenue stream that scales with usage.

Thus, even if Nigeria is not a high-revenue market, the sheer number of app downloads and uses would be a major advantage.

Still in line with this, while grocery delivery in these markets may not add huge revenue, it will, nonetheless, increase how frequently users open the app. The combination could help inDrive reduce reliance on ride commissions while reinforcing its core mobility business.

According to inDrive’s Chief Growth Business Officer, Andries Smit, the advertising business will initially focus on placements within the app. They will pop up mostly during the waiting period after a ride is booked and while passengers are en route. These, according to him, are the moments that generate high engagement and sustained attention.

He also noted that while in-car and on-vehicle advertising are part of the longer-term roadmap, the company plans to prioritise in-app formats through 2026. This is due to operational complexity around on-car advertising in emerging markets and stronger early returns from digital placements.

While this might be a major development for inDrive, especially for its super app strategy, it will, however, pose several concerns. The first is that a lot of people see ads as intrusive and aren’t particularly pleased with them popping up, especially on a service they are paying for. This may lead to negative reviews and maybe an exit of riders who simply can’t stand it.

Perhaps a solution to this will be to provide an option to block ads for those who do not want to see them. However, this would be a huge blow to the essence of the move. Even more so as the company may not be able to include extra costs for users who do not wish to see ads, as it does in other platforms that run ads.

There is also a privacy concern as users may worry that inDrive is using their personal details for targeted ads. inDrive reps are yet to respond to these concerns as of press time.

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