Uber Technologies Inc has launched a new advertising division as the ride-hailing firm looks to diversify its revenue sources through tie-ups with brands and marketers.

With a reach of 122 million monthly active users globally, the company said on Wednesday it will sell ad space inside its ride-hailing and UberEats apps, along with in-vehicle digital ads, sponsored mails and storefront ads.

"While consumers are making purchase decisions and waiting for their destination or delivery, we can engage them with messages from brands relevant to their purchase journeys," said Mark Grether, general manager for Uber's advertising division.

The launch follows a similar move by rival Lyft Inc in early August, as the barely profitable ride-share companies look for alternate sources of income.

Uber, which entered the ad business in 2019, has said it aims to reach $1 billion in advertising revenue by 2024.

Meanwhile, a U.S. proposal last week that would potentially deter gig workers from being treated as independent contractors is also set to push up costs for companies such as Uber and Lyft.